The Banking Ombudsman Scheme, 2006 is a mechanism established by the Reserve Bank of India (RBI) to provide a quick and cost-effective resolution of complaints and grievances of customers against banks. The scheme aims to enhance customer protection and promote confidence in the banking system. Here is an overview of the Banking Ombudsman Scheme, 2006:
Scope
The scheme covers complaints against all scheduled commercial banks, regional rural banks, and scheduled primary cooperative banks. It applies to a wide range of banking services, including deposits, loans, remittances, credit cards, ATM services, internet banking, mobile banking, and more.
Appointment of Banking Ombudsman
The RBI appoints Banking Ombudsmen who act as the designated authority for redressal of customer complaints. The Ombudsman is usually a senior official of the RBI or a retired banker with experience in handling banking-related matters.
Jurisdiction
The scheme divides the country into several banking regions, each having a designated Banking Ombudsman. The Ombudsman has jurisdiction over complaints arising within their respective regions.
Eligibility to File a Complaint
Any individual, including customers, sole proprietors, partnership firms, companies, trusts, associations, etc., can file a complaint under the scheme. However, certain conditions must be met, such as the complaint being made within a specific time frame and the complainant having made a written representation to the bank and not receiving a satisfactory response.
Types of Complaints
The scheme covers a wide range of complaints, including non-payment or delay in payment of deposits, non-credit of proceeds to accounts, non-observance of prescribed working hours, refusal to issue or delay in issuing various banking-related documents, and more. It also includes complaints related to unauthorized electronic transactions, discrepancies in account statements, and deficiencies in banking services.
Dispute Resolution Process
The scheme provides for a structured dispute resolution process. Initially, the complainant needs to approach the concerned bank for resolution. If the bank’s response is unsatisfactory or not received within a specified period, the complainant can approach the Banking Ombudsman. The Ombudsman facilitates the resolution through mediation, conciliation, or by passing an award, depending on the circumstances.
Powers and Authority of the Banking Ombudsman
The Ombudsman has the power to summon witnesses, call for documents, examine witnesses on oath, and issue awards. The Ombudsman’s decision is binding on the bank, subject to certain provisions for appeal.
Appeal Mechanism
If the complainant or the bank is dissatisfied with the Ombudsman’s decision, they can appeal to the Appellate Authority. The Appellate Authority is vested with the powers of a civil court and reviews the decisions of the Banking Ombudsman.
Free of Cost
The complaint redressal process under the scheme is free of cost for the complainants. There is no fee or charge associated with filing a complaint with the Banking Ombudsman.
The Banking Ombudsman Scheme, 2006 provides an accessible and independent platform for customers to seek resolution of their complaints against banks. It ensures that customer grievances are addressed impartially and efficiently, contributing to the overall trust and confidence in the banking system.
