Page 4 - Digi Notes - GA- 27-03-2016
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www.bankersguru.org
(General Awareness)
Banking Ombudsman Scheme, 2006
The RBI notified the Banking Ombudsman Scheme, 1995 on June 14, 1995 under section 35A of
the Banking Regulation Act, 1949.
A Working Group headed by Suma Verma with an aim to review, update, revised the Banking
Ombudsman Scheme, 2006.
The Banking Ombudsman Scheme enables a speedy and inexpensive forum to bank customers
for resolution of complaints relating to certain services rendered by banks.
The Banking Ombudsman is a senior official appointed by the Reserve Bank of India to redress
customer complaints against deficiency in certain banking services.
As on date, fifteen Banking Ombudsmen have been appointed with their offices located mostly in
state capitals.
All Scheduled Commercial Banks, Regional Rural Banks and Scheduled Primary Co-operative
Banks are covered under the Scheme.
There is a form along with details of the scheme on the RBI Website.
The amount, if any, to be paid by the bank to the complainant by way of compensation is limited to
the amount arising directly out of the act or omission of the bank or Rs 10 lakhs, whichever is
lower.
The Banking Ombudsman may award compensation not exceeding Rs 1 lakh to the complainant
only in the case of complaints relating to credit card operations for mental agony and
harassment.
The Banking Ombudsman will take into account the loss of the complainant s time, expenses
done by the complainant, harassment and mental anguish suffered by the complainant while
passing such award.
If a complaint is not settled by an agreement within a period of one month, the Banking
Ombudsman proceeds further to pass an award. Before passing an award, the Banking
Ombudsman provides reasonable opportunity to the complainant and the bank, to present their
case.
It is up to the complainant to accept the award in full and final settlement of your complaint or to
reject it.
If one is not satisfied with the decision passed by the Banking Ombudsman, one can approach the
appellate authority against the Banking Ombudsmen’s decision.
Appellate Authority is vested with a Deputy Governor of the RBI.
Rising complaints against non-banking finance companies (NBFCs) regarding deficiency in
services has prompted the Reserve Bank of India to examine the possibility of coming up with an
NBFC-specific ‘ombudsman scheme’.
The Reserve Bank of India has asked all public sector banks, some private sector and foreign
banks to appoint an internal ombudsman.
The internal ombudsman who would be designated Chief Customer Service Officer (CCSO)
should not have worked in the bank in which he/she is appointed as CCSO.
Date of Release -05-FEB-16 SUBJECT: GA www.bankersguru.org
(General Awareness)
Banking Ombudsman Scheme, 2006
The RBI notified the Banking Ombudsman Scheme, 1995 on June 14, 1995 under section 35A of
the Banking Regulation Act, 1949.
A Working Group headed by Suma Verma with an aim to review, update, revised the Banking
Ombudsman Scheme, 2006.
The Banking Ombudsman Scheme enables a speedy and inexpensive forum to bank customers
for resolution of complaints relating to certain services rendered by banks.
The Banking Ombudsman is a senior official appointed by the Reserve Bank of India to redress
customer complaints against deficiency in certain banking services.
As on date, fifteen Banking Ombudsmen have been appointed with their offices located mostly in
state capitals.
All Scheduled Commercial Banks, Regional Rural Banks and Scheduled Primary Co-operative
Banks are covered under the Scheme.
There is a form along with details of the scheme on the RBI Website.
The amount, if any, to be paid by the bank to the complainant by way of compensation is limited to
the amount arising directly out of the act or omission of the bank or Rs 10 lakhs, whichever is
lower.
The Banking Ombudsman may award compensation not exceeding Rs 1 lakh to the complainant
only in the case of complaints relating to credit card operations for mental agony and
harassment.
The Banking Ombudsman will take into account the loss of the complainant s time, expenses
done by the complainant, harassment and mental anguish suffered by the complainant while
passing such award.
If a complaint is not settled by an agreement within a period of one month, the Banking
Ombudsman proceeds further to pass an award. Before passing an award, the Banking
Ombudsman provides reasonable opportunity to the complainant and the bank, to present their
case.
It is up to the complainant to accept the award in full and final settlement of your complaint or to
reject it.
If one is not satisfied with the decision passed by the Banking Ombudsman, one can approach the
appellate authority against the Banking Ombudsmen’s decision.
Appellate Authority is vested with a Deputy Governor of the RBI.
Rising complaints against non-banking finance companies (NBFCs) regarding deficiency in
services has prompted the Reserve Bank of India to examine the possibility of coming up with an
NBFC-specific ‘ombudsman scheme’.
The Reserve Bank of India has asked all public sector banks, some private sector and foreign
banks to appoint an internal ombudsman.
The internal ombudsman who would be designated Chief Customer Service Officer (CCSO)
should not have worked in the bank in which he/she is appointed as CCSO.
Date of Release -05-FEB-16 SUBJECT: GA www.bankersguru.org
