Banking Ombudsman Scheme in India
The Banking Ombudsman scheme in India presents an inexpensive forum to bank customers for resolution of complaints relating to certain services rendered by banks.
This service was first introduced in 1995 by RBI. The head of banking Ombudsman is usuallu a senior official appointed by RBI.
As per the Banking Ombudsman Scheme, 2006, All Scheduled Commercial Banks, Regional Rural Banks and Scheduled Primary Co-operative Banks comes under the ambit of this Scheme.
- The customer first needs to approach the bank for the resolution of his issue.If the reply is not received from the bank within a period of one month , or the bank rejects the complaint, or if the complainant is not satisfied with the reply given by the bank, he/she can approach the Banking Ombudsman. PLEASE NOTE: The customer first needs to approach the bank for resolution, else his appeal will not be heard in Banking Ombudsman.
- If the bank does not reply, customer can approach Ombudsman within 1 month of filing the complaint with the bank.
- If the bank replies, but the customer is unsatisfied with the reply, customer can approach Ombudsman within 1 year of receiving the reply from the bank.
- The Banking Ombudsman does not charge any fee for resolving customers’ complaints.The compensation amount to be paid by banks, if any, cannot be more than Rs 10 lakhs.
- If the complaint is not settled by an agreement within a period of one month, the Banking Ombudsman proceeds further to pass an award.
- If the customer is not satisfied with the decision made by the Banking Ombudsman, he/she can approach the appellate authority. The Appellate Authority is a Deputy Governor of the RBI.
That’s all for the Banking Ombudsman Scheme in India. Hope this provides a decent explanation on the topic.