i. The Banking
Ombudsman Scheme enables an expeditious and inexpensive forum to bank customers
for resolution of complaints relating to certain services rendered by banks.
ii. The Banking
Ombudsman is a senior official appointed by the Reserve Bank of India to
redress customer complaints against deficiency in certain banking services.
iii. All Scheduled
Commercial Banks, Regional Rural Banks and Scheduled Primary Co-operative Banks
are covered under the Scheme.
Other Important Points:
- > The Banking
Ombudsman does not charge any fee for filing and resolving customers’
complaints.
- > The amount, if
any, to be paid by the bank to the complainant by way of compensation for any
loss suffered by the complainant is limited to the amount arising directly out
of the act or omission of the bank or Rs 10 lakhs, whichever is lower.
- > The Banking
Ombudsman may award compensation not exceeding Rs 1 lakh to the complainant
only in the case of complaints relating to credit card operations for mental
agony and harassment.
- > If a complaint
is not settled by an agreement within a period of one month, the Banking
Ombudsman proceeds further to pass an award. Before passing an award, the
Banking Ombudsman provides reasonable opportunity to the complainant and the
bank, to present their case.
- > If one is not
satisfied with the decision passed by the Banking Ombudsman, one can approach
the appellate authority against the Banking Ombudsmen’s decision. Appellate
Authority is vested with a Deputy Governor of the RBI.
- > If one is
aggrieved by the decision, one may, within 30 days of the date of receipt of
the award, appeal against the award before the appellate authority.