Importance of Banking Ombudsman Scheme in India

Posted: April 30, 2015 in Banking Ombudsman
Tags: , ,
The Banking Ombudsman Scheme by RBI is a good move to check the deficiencies of banks in meeting customers’ requirements and solving their conflicts with active intermediation. One should be cautious as well as careful in reading the banks’ terms and conditions pertaining to particular service if one is going to take. The mixed economy of India is thriving on public as well as private banks and the advent of foreign commercial banks has revolutionised the whole sector. These changes improved the banking facilities in India, but it is also true that many people are suffering from the ill-treatment on few occasions.
If you are one such victim and your grievances are still unheard, then file your complaint before the Banking Ombudsman. The Banking Ombudsman Scheme, under the RBI is a process to resolve customers’ complaints regarding certain services of the bank. The Banking Ombudsman is the mediation of RBI authorised person in fixing customers’ complaints between the scheduled banks and their customers. There is a common myth that Banking Ombudsman Scheme always favour a customer/service taker, it is absolutely wrong, the ombudsman impartially investigate a  issue and also penalise a customer for wrong or criminal activities.

A customer complaints to the Banking Ombudsman when his/her bank did not response to the complaint within a month, or bank rejects the complaint, or the complainant get unsatisfied with the bank’s response. This quasi judicial authority can summon both the parties to resolve a problem through mediation. One can find the Banking Ombudsman in the state capital, at present, 15 banking ombudsman offices cover the entire country. Now for the convenience of people the online submission is also possible on the Reserve Bank of India’s website. The new Banking Ombudsman Scheme, additionally provides for the institution of an ‘appellate authority’ for appeal against an award passed by the Ombudsman both by the bank as well as the complainant.

Problems like stopped transaction services or delay in payment, submission without any sufficient cause, levying commission charge for a service without any prior notice. Ignorance and delay in issuing drafts, pay orders and bankers’ cheques, issues like these can also be addressed Banking Ombudsman. These are only the few issues of the 27 services of the banks encompassed under the Banking Ombudsman, the entire list one can find on RBI’S website. The old saying “prevention is better than cure ‘ is the best solution to safeguards the interest of banks’ customers. It is advisable, before availing the services of bank, a customer must carefully read all the terms and conditions of that bank.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s