BANKING OMBUDSMAN : Indian Scenario

A Quasi judicial authority who will look after and preventing the extortion issues related to Banking business and its related malpractices that causes severe customer dissatisfactions and threat to the economic growth of the country gradually.                                                                                                                                

Indian Scenario

The Banking Ombudsman Scheme was first introduced in India in 1995 with pursuant to the a decision by the Government of India to enable resolution of complaints of customers of banks relating to certain services rendered by the banks. The current scheme became operative from 1 January 2006. From 2002 until 2006, around 36,000 complaints have been dealt by the Banking Ombudsman.

1. Totally 15 Ombudsman have been appointed for different regions. These also include New Delhi, Bhopal, Bangalore, Chandigarh, Hyderabad, Mumbai, Patna, Jaipur, Kanpur, Guwahati and Bhubaneshwar.
2. All the scheduled primary cooperative banks and commercial banks have been brought under Banking Ombudsman scheme.
3. RRBs are not yet been included under this authority.
4. The matter should be reported by the grieved customers to the Ombudsman within One month after getting final reply from the concerned banks.
5. The Ombudsman will not react to the complaint having received after this time limit.
6. The banking Ombudsman scheme 2006 has been amended by RBI on February 3^rd, 2009.
7. New coverage has been introduced under this scheme.

Types of Complaints

1. Inordinate delay or Non-payment in the payment or collection of cheques, drafts, bills, etc.;
2. Non-acceptance, without sufficient cause, of small denomination notes tendered for any purpose, and for charging of commission for this service
3. Non-adherence to prescribed working hours
4. Failure to provide or delay in providing a banking facility
5. Delays in receipt of export proceeds, handling of export bills, collection of bills etc
6. Refusal to open deposit accounts without any valid reason for refusal
7. Levying of charges without adequate prior notice to the customer
8. Refusal to accept or delay in accepting payment towards taxes, as required by Reserve Bank or Government
9. Forced closure of deposit accounts without due notice or without sufficient reason
10. Closure of account without customer concern
11. Refusal to close or delay in closing the accounts
12. Non-adherence to the fair practices code as adopted by the bank
13. Financial lose incurred to customer due to wrong information given by bank official
14. Any other matter relating to the violation of the directives issued by the Reserve Bank in relation to banking or other services.