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Who is Banking Ombudsman?

Banking Ombudsman

Banking Ombudsman

Banking Ombudsman is a higher official appointed by the RBI

The objective of appointing an Ombudsman is to settle customer grievances against deficiency in some banking services. This appointed Ombudsman is either a General Manger or a Chief General Manager of RBI.

Banks covered under the scheme are the following:

Banking Ombudsman scheme is applicable throughout India and all banks are covered under this scheme. The banks may be public sector bank, Private Sector Banks, Foreign Banks and Co-operative Banks.

Objectives Of The Scheme:

The basic objective of this scheme is to settle customer complaints. If the customer has any complaints which the bank cannot settle, then it is the duty of the Ombudsman to settle the problem. The settlement is to made by agreement between the bank and the customer.

Type of Complaints covered

  • Non-payment or inordinate delay in the payment or collection of cheques, drafts, bills etc.;
  • Non-acceptance, without sufficient cause, of small denomination notes tendered for any purpose, and for charging of commission in respect thereof;
  • Non-acceptance, without sufficient cause, of coins tendered and for charging of commission in respect thereof;
  • Non-payment or delay in payment of inward remittances ;
  • failure to issue or delay in issue of drafts, pay orders or bankers’ cheques;
  • Non-adherence to prescribed working hours ;
  • Failure to provide or delay in providing a banking facility (other than loans and advances) promised in writing by a bank or its direct selling agents;
  • Delays, non-credit of proceeds to parties accounts, non-payment of deposit or non-observance of the Reserve Bank directives, if any, applicable to rate of interest on deposits in any savings,current or other account maintained with a bank ;
  • Complaints from Non-Resident Indians having accounts in India in relation to their remittances from abroad, deposits and other bank-related matters;
  • Refusal to open deposit accounts without any valid reason for refusal;
  • Levying of charges without adequate prior notice to the customer;
  • Non-adherence by the bank or its subsidiaries to the instructions of Reserve Bank on ATM/Debit card operations or credit card operations;
  • Non-disbursement or delay in disbursement of pension (to the extent the grievance can be attributed to the action on the part of the bank concerned, but not with regard to its employees);
  • Refusal to accept or delay in accepting payment towards taxes, as required by Reserve Bank/Government;
  • Refusal to issue or delay in issuing, or failure to service or delay in servicing or redemption of Government securities;
  • Forced closure of deposit accounts without due notice or without sufficient reason;
  • refusal to close or delay in closing the accounts;
  • Non-adherence to the fair practices code as adopted by the bank or non-adherence to the provisions of the Code of Bank s Commitments to Customers issued by Banking Codes and Standards Board of India and as adopted by the bank ;
  • Non-observance of Reserve Bank guidelines on engagement of recovery agents by banks; and
  • Any other matter relating to the violation of the directives issued by the Reserve Bank in relation to banking or other services.

Complaints – Loans and Advances

  • Non-observance of Reserve Bank Directives on interest rates
  • Delays in sanction, disbursement or non-observance of prescribed time schedule for disposal of loan applications
  • Non-acceptance of application for loans without furnishing valid reasons to the applicant
  • Non-adherence to the provisions of the fair practices code for lenders as adopted by the bank or Code of Bank’s Commitment to Customers, as the case may be
  • Non-observance of any other direction or instruction of the Reserve Bank as may be specified by the Reserve Bank for this purpose from time to time.
  • The Banking Ombudsman may also deal with such other matter as may be specified by the Reserve Bank from time to time.

Types Of Complaint Not Entertained:

  • Issues already settled by ombudsman.
  • Issue already settled by a court or pending in court.

Disclaimer : The above mentioned regulations are as per detailed published in RBI website. It may get revised on regular basis. Visitors are requested to check with RBI website for the latest regulations.

Visit RBI website for more http://rbi.org.in/commonman/English/Scripts/AgainstBank.aspx

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  1. Becoming a Banking Ombudsman is a job of great responsibility. As the article correctly states, banking ombudsman is a senior official appointed by the RBI. He/she must be highly qualified and have years of experience in banking sector. A good article which gives information about the duties and functions of a Banking Ombudsman. Banking ombudsman interferes when a bank cannot resolve an issue.

  2. There are several areas of disputes that can not be resolved by the bank or the highest officials of the bank.There comes into view, the ombudsman, who playing his/her part resolves and provides assistance to the customers even if the banking officials fail.His part is clearly mentioned which was really helpful.

  3. With the way banks behave these days – using our money to make their own (and God knows how rich banks already are), it’s nice to be able to have someone represent the interests of the customers. I’ll always consider mentioning the bank ombudsman next time I have a complaint that can’t be resolved by the bank. Especially if I am overcharged in fees!

  4. Banking ombudsman is a official of the bank at a higher post usually a General Manager or the chief GM of RBI. So how can he be non partial to the disputed matter? If for any reason the dispute is not resolved then to whom should the parties go for solving their issues?

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