Several people have encountered frustrating conditions with bank officials and their services. Seemingly, for an extra fee of bank charges, an inexact representation of TDS in our Form 26AS and many more like these problems are faced by customers. In spite of constant follow up with the Bank Authorities the people complaints and objections continue to be unsolved. The question is always raised what do in this situation? Shall we make a complaint against them? Who will help us? A simple answer to all these questions is Banking Ombudsman.

What is Banking Ombudsman?

Banking Ombudsman is a quasi-judicial official appointed by a quasi-judicial authority and the  Reserve bank of India under India’s Banking Ombudsman Scheme 2006, and the jurisdiction was formed following to a judgment made by India’s government to facilitate in resolving customer complaints and objections against insufficiency in banking services.

What can Banking Ombudsman do?

If a customer is not happy with the services and facilities rendered by the Bank, the customer has all the power to complain to the complaint cell of the Bank. If the Bank does not take any action or efforts, then the customer can propose the problem with the Ombudsman of the relevant bank. The RBI has selected steps to establish the Internal Ombudsman and make them extra self-governing. However, several customers observe that even though the Bank has a complaint system and an Internal Ombudsman, many of their objections continue to be unsolved and they are not allowed and forced to address the external Banking Ombudsman. So, the banking Ombudsman officials are introduced in every relevant bak for the sake of customers. They look forward to all the complaints and resolve that at their best.

Banking Ombudsman Scheme

The Banking Ombudsman Scheme permits a speedy and reasonable forum to bank customers for analysis of grievances linking to specific services provided by banks. Banking Ombudsman Scheme needs the Banking Ombudsman officials to resolve bank complaints.

Objectives of Banking Ombudsman

  • To intensify and spread the awareness of the Banking Ombudsman Scheme.
  • To help in swift and legitimate redressal of complaints through the control of IT systems, extensive and simply convenient database and intensified aptitudes aims.
  • Renders advice and feedbacks to RBI towards building relevant and up-to-date guidelines to banks to enhance the level of customer service and to grow their internal complaint redressal systems.
  • To secure redressal of complaints of users in banking services like in a fair manner and reasonable that will give purpose to refined customer services in the banking sector on a constant basis.

Kind of complaints settled by banking ombudsman

The kind of the grievances and complaints which are viewed by a Banking Ombudsman are very general, and it has been enabled to receive and count complaints concerning the following.

  • Refusal to accept, without adequate cause, of small denomination notes presented for any purpose, and for charging of commission for this service.
  • Non-acceptance, without adequate cause of coins, presented and for charging of commission for this service.
  • Fails to do payment or excessive delay in the payment or collection of bills, drafts, cheques etc.
  • Fails to allow or delay in issue, of drafts, pay orders or bankers’ cheques, personal loans.
  • Non-adherence to directed working hours.
  • Fails to give or hold in giving a banking facility (other than business loans and personal loans or credit cards )assured in writing by a bank or directly selling to agents.
  • Obstructions and delays, non-credit of proceeds to parties’ accounts, non-payment of deposit or non-observance of the Reserve Bank directives. In case any, relevant to a rate of interest on deposits in any savings account, current account or other account managed in a bank.
  • Delays in the administration of export bills, receipt of export proceeds, a collection of bills and many more for exporters gave the said complaints concern to the bank’s procedures in India.
  • Fails to honor a letter of credit commitments or guarantee.
  • Denial to open deposit accounts without any valid basis for denial.
  • Complaints from Non-Resident Indians holding accounts in India in relation to their payments from abroad, deposits and other bank-related concerns.
  • Any additional matter relating to the destruction of the directives allotted by the RBI in relation to banking or other services.

Points to remember before filing a complaint procedure

Before preparing to file a complaint to the Banking Ombudsman, the customer should make a written description to the bank and the bank should possess:

  • Denied and refused the complaint
  • No response within a time of 1 month after the bank received the complainant
  • The customer is not happy and satisfied with the response given to him by the bank.
  • No response will be obtained, not more than 1 year and 1 month after the date of the enactment to the bank.

After the above follow-ups, any person who has a complaint upon a bank on any one or more of the above suitable grounds can himself. The assistance asked for an empowered agent or representatives excluding advocates, make a grievance to the Banking Ombudsman.

A complaint appearing out of the services of credit cards and other types of services with centralized proceedings should be filed before the Banking Ombudsman within whose provincial jurisdiction the billing address of the customer is placed

Procedure for filing a complaint with the Banking Ombudsman

The grievance should be made in writing format. It should be approved and signed by the customer who files a complaint or his /her empowered agent. In the objection and complaints, the following data should be clearly asserted:

  •  Name and the address of the customer filing a complaint.
  • The evidence and data giving rise to the complaint.
  • The assistance asked for.
  • The name and address of the branch or office of the bank against which the complaint charge is made.
  • The type and amount of the loss effected to the customer.

The customer should file onward with the complaint, copies of the documents if any, which he/she intends to rely upon and a statement that the grievance is maintainable. A grievance and complaint made through a print out of the complaint should be taken on the report and records of the Banking Ombudsman and electronic medium should also be acquired by the Banking Ombudsman. On presenting the complaint, the Banking Ombudsman will be asked for records from the Bank. It will begin hearings to reach the outcome.

The complaints can be rejected by the Banking Ombudsman

  • If the complaint has the corresponding subject matter that was resolved in the before within the office of the Banking Ombudsman in any operations.
  • Flighty or disturbing complaints.
  • The topic matter of the complaint is pending for clearance or has previously been administered at another hearing.
  • The Bank has not been addressed for redressal of the complaint.
  • No grievance will be made within 1 year from the date of receipt of the response of the bank or if no response is obtained and the grievance to Banking Ombudsman is made later in the time period of 1 year or 1 month from the date of objection to the bank.

Banking ombudsman, a quasi-judicial official is designed with an intention to settle the grievances and complaints of the customers of the Bank. Section 35A of the Banking Regulation Act, 1949 proceedings with the Banking Ombudsman Scheme.

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