Ombudsman-4 , Banking Fundamentals to Know for Students.

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Steps of complaints

·  Write or e-mail to concerned bank branch, office or department

·  Write or e-mail to the nodal officer at controlling office and head office of the bank

·  Write or e-mail to Director of Public Grievances, Govt of India, Cabinet Secretariat, Sansad Marg, New Delhi-110001

·  The complaint in the appropriate form (along with copies of earlier correspondence with the concerned bank) to Banking Ombudsman (Located at state capitals under RBI Ombudsman Scheme)

·  District Consumer Forum (under the Consumer Protection Act, 1985) complain in an appropriate form.

·   In this article, we will learn more about banking ombudsman, their role, appointment & tenure, grounds of complaints among others.

·  Banking ombudsman is a quasi-judicial authority created by Government of India to provide effective complaints resolutions. It is a senior an official appointed by RBI to address the complaints by the banking customers. Some people also call it ombudsman banking.

Banking Ombudsman Scheme 2006

The RBI first introduced the Banking Ombudsman Scheme in 1995 and it was revised in 2002 to over regional and rural banks. Then again there was a revision in the year 2006 which is known as “Banking Ombudsman Scheme 2006” to cover complaints for ATM transactions, debit and credit cards, deduction of service charges, etc. It was last amended on February 2009, to cover problems due to internet banking. This RBI Banking Ombudsman scheme covers all banks- PSU Banks, Rural and Co-operative Banks. The Ombudsman Banking has been defined under clause 4 of the Banking Ombudsman Scheme, 2006.
The RBI shall specify the territorial limits to which the authority of each of the Banking Ombudsman shall extend.
Appointment & tenure
The RBI on recommendation by its Governor may appoint one or more officials for this post. The minimum age to be considered shall be 55 years. The person selected will be appointed for a period of 3 years which could be further extended for a period not exceeding 2 years and subject to the age limit of 65 years.
Clause 12 Grounds of Complaints
1) Complaints Pertaining to Deficiency in any of the Banking Services such as:-

·  Non-payment or delay in payment of cheques, drafts, bills, etc

·  Non-acceptance of small denomination notes without any reason and also charging of commission in respect thereof

·   Non-issuance of drafts to customers

·   Non-adherence to prescribed working hours by the branches

·   Failure to honor a guarantee or letter of credit

·   Claims in regards to fraudulent withdrawals or fraudulent encashment of the cheque or a bank draft

·  Complaints about any of the accounts pertaining to delays, non-credit of proceeds to parties accounts

·   Complaints about non-observance of RBI’s directives applicable to the rate of interests on deposits or violation of directives on any other matter

·   Complaints from exporters for delays in receipt of export proceeds, handling of export bills, collections of bills

·   Complaints from NRI’s in regards to remittance from abroad

·   Complaints pertaining to a refusal to open deposit accounts without any valid reason

2) Complaints Concerning loans & advances

·         Non-observance of RBI directives on interest rates

·         Delays in sanction or disbursement of loan applications

·         Non-acceptance of loan application without any valid reason

·         Non-observance of any other directives by RBI.