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Article On Banking Ombudsman
Article On Banking Ombudsman
ABSTRACT
Customer is the king and the reason for existence of any business enterprises.Hence, successful
organization is always looking for new techniques and tools for developing and improving
relationship with their customers.In the competitive banking era, banks have to strive hard for
retaining and enlarging their customer base by providing prompt and efficient
services.Customers are satisfied only when the services provided by the banks are according to
their expectation and when their grievances are handled carefully. Reserve bank of India has
taken a great step to redress the grievances of customers and it is called as Banking Ombudsman
Scheme. Banking Ombudsman provides a platform for the customers so that customers can
approach for getting solutions of their grievances.For this research study 100 customers are taken
as sample size.The paper initially focuses on the Banking Ombudsman Scheme and further
analyses the reasons behind dissatisfaction among the bank customer in Jaipur district in
Rajasthan. From this study it is concluded that many customers are dissatisfied with the bank
services mainly due to delay in services but only the few customers approach to banking
Ombudsman for their grievances. So it is very essential for the banks to create awareness about
Banking Ombudsman Scheme among the customers.No doubt, the scheme will gain more
popularity in future and its impact on service quality would be positive.
KEYWORDS: Banking Ombudsman, Redressal, Resolutions and Grievances.
Review of Literature
Very less work have been done regarding the services of banking ombudsman to their
customer. According to AparnaMeduri (2006), she focused in her paper that the banking
ombudsman under the banking ombudsman scheme and the Customer Redressal
Authorities under the consumer protection Act both redresses the same type of cases i.e.
insufficiency or grievances of banking services, though, their roles are different in terms
of redressal machinery , the procedure for redressal. The most aggrieved bank customers
are forced to take shelter under the consumer protection act rather than of under their
Banking Ombudsman Scheme.
Chatterjee (2007) and Khan (2010) evaluated various scheme of banking ombudsman
schemes in operation from time to time. Khan recommended that work should be done to
increase the instances of disputes being resolved & settled down by an arbitrator or
conciliation rather than by awards. Further, in the event, if ombudsman has to give an
award; it should be made final and binding on the parties with the provision of a single
appeal allowed in a higher court of law.
Dr. Tejinderpal Singh(2011) evaluated that there is a significant increment in the
complaints received by the banking ombudsman, it shows that awareness are increased in
the customer regarding banking ombudsman scheme, but it still has not reached to rural
poor, so campaigns should be spread to rural areas to increase the awareness about this
scheme among the rural customers.
Myladri and Sirisha (2011) observed that banking ombudsman is a godsend for the
customer because it provides an easy platform to the customers to redress their
complaints.
Mahesh Baburao (2012) pointed out that the awareness provided by the Reserve Bank of
India is very low and still the awareness has to be created. He also analyzed that if there
is an individual ombudsman for each urban co-operative bank, then his objective would
be satisfied.
Dr Devendra Singh and Dr. GauravAgarwal (2014) evaluated the effectiveness of the
Banks Ombudsman as a banking dispute redressal body and also pointed out that a good
number of complaintsis received and resolved by the bank ombudsman at various
locations of India.
Dr. Dinakar G and Girivasuaki K (2015) observed that effectiveness of BO scheme. They
evaluated that BO scheme during its working is very effective because there was no more
pending complaints more than a month.
Research objectives
To study the effectiveness of banking Ombudsman Scheme in banks.
To analyze the reasons for dissatisfaction of the customers.
To find out the various steps taken by RBI for spreading awareness about this scheme.
Research methodology
In this paper both primary and secondary data are used for survey work. Primary data have been
collected through structured questionnaire which was distributed among the respondents, who
are the customers/ account holders of different banks. Mainly two methods were used for
collecting primary data like survey and interview.The survey was conducted among 100
customers/account holders of the banks, and this was done by personally administering the
questions to them. Secondary data have been collected through various websites and publication
of RBI.
The data shows that the frequency of customers to visit the banks is varied from customer to
customer. The study finds that most of the bank customers are using internet banking for all their
transactions, it means the number of visits they will make to the banks will be comparatively
less. It also shows that the number of customer who visit the banks once in a month are 40%,
while 24% of the customers visit the banks once or twice quarterly and the other customers who
visit the banks twice or thrice in half yearly and yearly is about 16%.
So it is duty of the banks to ensure that whether the number of
visits of a customer is decreasing or increasing. So that bank can understand the satisfaction level
of the customers towards banking services.
3. Reasons For the Dissatisfaction among the customers: The bank customers are
always flooded with many complaints. There are so many reasons behind their
dissatisfaction. Reserve Bank of India has mentioned certain grounds of complaints in clause
no 8 under Banking Ombudsman Scheme.
50
45
40
35
30
25
20
15
10
5
0
Levying of high charges without adequate prior notice to the customer
Satisfied; 15%
Extreamly Satisfied ; 20%
Neutral; 20%
Very Satisfied; 38%
The data shows that most of the customers lodge their complaints through complaint box and
customer care. Only few customers register their complaints to head office and only 10%
complaints are given to Banking Ombudsman by the customers.
So it is very essential for the banks to create awareness about the
Banking Ombudsman Scheme of Reserve Bank of India.
Yes; 66%
60
40
20
0
A person has lodged his compliant to banking ombudsman offices, stating that a credit
card agency had sent him phone calls, emails etc. demanding for payment of outstanding
card dues to the tune of Rs. 1.49 lakh, though he had never owned a card. After the
investigation it was verified that the complainant was not the customer or defaulter of
aforesaid card. Considering the mental agony/ harassment suffered by the complainant,
the card agency was advised to pay him Rs.10,000 as a token of compensation.
A complainant, widow of defense pensioner, complained that she was being paid less
pension than what she was entitled to. The bank in its reply contended that she was a
recipient of ordinary Family Pension and correct pension was being paid. The bank,
however, could not produce the relative circulars/instructions for its contention. Both the
Controller of Defense Accounts and Zila Sainik Board were contacted for relevant
information/circulars were obtained. In terms of the extant instructions applicable for the
subject the complainant was paid arrears to the tune of 5, 72,822/- and her pension was
also revised.
Suggestions
From the overall study of this research it is found that there is some lacking in customer
knowledge about the benefits of Banking Ombudsman Scheme. So it is very essential to
spread awareness among the customers so that bank customers can avoid unnecessary
risk related to banking transactions.
Awareness about this scheme should be created through many ways like social media
where majority of customers access. By distributing the pamphlets and keeping banners
in every bank can also create the awareness among the customers. Awareness campaigns
should be conducted by organizing seminars, conferences etc.
Conclusions
The banking ombudsman scheme is a boon and very important channel for redressal of
grievances by the general public against banks and banking services. .In the competitive banking
era, banks have to strive hard for retaining and enlarging their customer base by providing
prompt and efficient services.Customers are satisfied only when the services provided by the
banks are according to their expectation and when their grievances are handled carefully.
Reserve bank of India has taken a great step to redress the grievances of customers and it is
called as Banking Ombudsman Scheme. Banking Ombudsman provides a platform for the
customers so the customers can approach for getting solutions of their grievances. From the
above discussion and analysis shows that a good number of complaints is received and redressed
by banking ombudsman, it can be said that customers are very much satisfied with the services
of banking ombudsman. This is in the case in urban population but rural population is still not
aware about the banking ombudsman.
References:
Dr. Devendra Singh, (2013), Bank Ombudsman InIndia As Dispute Redressal Mechanism
And Its Effectiveness, in NIET, Journal of Management.