Banking Ombudsman

By Current A�airs Team - September 23, 2014

Banking Ombudsman is a person who hears complaints relating to certain

services rendered by banks. The Banking Ombudsman Scheme is introduced
under Section 35 A of the Banking Regulation Act, 1949 by RBI with effect
from 1995.

The Banking Ombudsman is a senior official appointed by the Reserve Bank of

India to redress customer complaints. All Scheduled Commercial Banks,
Regional Rural Banks and Scheduled Primary Co-operative Banks are covered
under the Scheme.

A Person can make a complaint to the Banking Ombudsman for things such as,

Inordinate delay in the payment or collection of cheques, drafts, bills etc.

Non-payment or delay in payment of inward remittances.
Non-adherence to prescribed working hours
Complaints from NRIs having accounts in India in relation to their
remittances from abroad, deposits and other bank-related matters
Refusal to open deposit accounts without any valid reason for refusal
Levying of charges without adequate prior notice to the customer
Failure to provide or delay in providing a banking facility promised in writing
by a bank or its direct selling agents.
Forced closure of deposit accounts without due notice or without sufficient
reason;
Refusal to close or delay in closing the accounts.
Refusal to accept or delay in accepting payment towards taxes, as required
by Reserve Bank/Government.
Delays in receipts of export proceeds, handling of export bills, collection of
bills etc. for exporters provided the said complaints pertain to the Banks
operations in India.
Non-acceptance of application for loans without furnishing valid reasons to
the applicant

It is possible to file a complaint with the Banking Ombudsman simply by writing

on a plain paper. One can also file it online by sending an email to the Banking
Ombudsman. Banking Ombudsman can order the Bank to compensate the
actual money loss OR Rs.10 lakh (whichever is lower). In case of Credit card
related cases, the Ombudsman can order the bank to pay additional fines (upto
Rs.1 lakh) for the mental harassment caused to the customer.

The Banking Ombudsman does not charge any fee for filing and resolving
customers’ complaints.

If a person is not satisfied with the decision passed by the Banking

Ombudsman, he/she can approach the appellate authority against the Banking
Ombudsmen’s decision. Appellate Authority is vested with a Deputy Governor of
the RBI.