DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : Raja Sekhar Koduru
Designation : Lecturer in CCP
Branch : Commercial & Computer Practice
Institute : Govt. Polytechnic for Women,
Kakinada, E.G. District
Year/semester : 3rd year – VI Semester
SubjEct code : CCP-604(B)
Topic : Customer Services Offered by Bank
Duration : 50 mts.
Sub topic : Ombudsman
Teaching aids : Power Point & Pictures
CCP604(B).33 1
Recap

 In previous sessions we have learnt about EFT

and ECS.

CCP604(B).33 2
Objectives:

 On completion of this topic you will be able to

 Define Ombudsman

 Explain the Ombudsman scheme

CCP604(B).33 3
Structure
 Known to unknown

 Ombudsman

 Qualifications

 Remuneration

 Procedure for redresses of Greevences

 Summary

 Quiz

 Assignment
CCP604(B).33 4
Known to unknown

 You have some grievances in your college. Whom do

you approach?
 Head of Section concerned / Principal

 You purchased one consumer durable item and you are

having frequent problem with it. Whom do you
approach?
 The shop keeper who sold the item / consumer forum.

CCP604(B).33 5
Known to unknown
 You have some grievances about services of bank
branch in which you have account. Whom do you
approach?
 The Branch Manager concerned.

 If the branch Manager did not respond to your

grievances, whom do you approach for justice?
 Banking Ombudsman.

CCP604(B).33 6
Customer Grievances
 Before going to understand the concept of ombudsman,

we discuss some definitions.

 What is ‘customer grievances’?

 A set of complaints, objections and criticisms raised by a

customer of a bank in respect of various banking and

financial services rendered by it, is known as ‘customer
grievances’.

CCP604(B).33 7
Grievances Redressal

 What is ‘grievances redressal’?

 The mechanism of redressing, rectifying, restoring and

remedying the complaints of a customer of a bank in

respect of various banking and financial services
rendered by it, is known as ‘grievances redressal’.

 The objective is to satisfy and enhance the customer

satisfaction.
CCP604(B).33 8
Banking Ombudsman

 Who is ‘ombudsman’?

 An official mechanism set up by the RBI for the

resolution and settlement of complaints relating to

provision of banking and financial services, is called a

‘Banking Ombudsman’.

CCP604(B).33 9
Banking Ombudsman Scheme

 What is ‘ banking ombudsman scheme’?

 The grievances and redressal of customers of a bank

are governed by the ‘Banking Ombudsman Scheme’.

 The scheme was introduced by the Reserve Bank of

India…

CCP604(B).33 10
Ombudsman Scheme

 ..from June 14th, 1995 to protect the interest of the

customers as well as redress their grievances.

 The scheme is applicable to all Commercial Banking and

Scheduled Co-operative Banks, Regional Rural Banks

operating in India.

CCP604(B).33 11
Object of the Scheme

 What is the object of ‘banking ombudsman scheme’?

 The object of the scheme is to enable resolution of

complaints relating to provision of banking services and

to facilitate the satisfaction, or settlement of such

complaints.

CCP604(B).33 12
Appointment of Ombudsman
 Who appoints ombudsman?

 Banking ombudsman is appointed by the Reserve Bank

of India to carry out the functions entrusted to him by or
under the scheme.
 The RBI specifies the territorial limits, to which the
authority of each of the Banking Ombudsman appointed
shall extend.

CCP604(B).33 13
Location of Ombudsman

 The office of the Banking ombudsman is located at those

places specified by the Reserve Bank of India.

 In order to expedite disposal of complaints, the Banking

Ombudsman may hold sittings at other places within his

area of jurisdiction.

CCP604(B).33 14
Qualification of Ombudsman

 The banking ombudsman will be a person of high

standing in the legal, banking, financial services, public

administration, or management sectors.

 TENURE OF OMBUDSMAN

 Generally he will be appointed for a period of 3 years.

CCP604(B).33 15
Qualification of Ombudsman

 He will be eligible for extension for a further period of 2

years..

 ..subject to an overall age limit of 65 years.

 The banking ombudsman should devote his whole time

to the affairs of his office.

CCP604(B).33 16
Qualification of Ombudsman

 If the RBI wishes it might permit the Banking

Ombudsman to undertake such part time honorary work

as is not likely to interfere with his duties as Banking

Ombudsman.

CCP604(B).33 17
REMUNERATION

 The remuneration and other perquisites

payable/extended to the Banking Ombudsman is

determined by the RBI from time to time.

 And the expenses should be borne by the banks in such

proportion and in such manner as may be determined by

the RBI

CCP604(B).33 18
Staffing of Office

 The banking ombudsman is provided with a secretariat

drawn from banks, RBI etc. who will be placed on duty
with the office of the Banking ombudsman.
 The cost of the secretariat will be shared by banks in
such proportion as may be determined by the reserve
bank.

CCP604(B).33 19
Procedure for Redressal of Grievance

 Following are the procedures relating to the redressal of

grievances of customers.

 MAKING A COMPLAINT:

 Any person who has a grievance against a bank, may

himself or through an authorized representative make a

complaint in writing to the banking ombudsman.

CCP604(B).33 20
Procedure for Redressal of Grievance

 The complaint should be in writing duly signed by the

complainant or his authorized representative.

 The complaint should state clearly the following…

 …the name and address of the complainant

CCP604(B).33 21
Procedure for Redressal of Grievance

 …the name and address of the branch or office of the

bank against which the complaint is made.

 SUPPORTED DOCUMENTS

 The complainant should state clearly the facts giving rise

to the complaint and it should be preferably supported by

documents, if any.

CCP604(B).33 22
Procedure for Redressal of Grievance

 LOSS TO THE COMPLAINANT

 He should also mention the nature and extent of the loss

caused to him and the relief sought from the banking

ombudsman.

CCP604(B).33 23
Procedure for Redressal of Grievance

 TIME FRAME:

 The complaint should be made to the ombudsman only

after making a representation to the bank named in the
complaint.
 And the complaint should have been rejected or no reply
should have sent within a period of 2 months of the
receipt of the complaint

CCP604(B).33 24
Procedure for Redressal of Grievance

 Or the complainant should not have been satisfied with

the reply given by the bank.

 The complaint should be made within one year from the

date of rejection of final reply given by the bank

concerned.

CCP604(B).33 25
Procedure for Redressal of Grievance

 The complaint should not be in respect of the same

subject-matter already settled through the office of the

banking ombudsman in any previous proceedings.

 The complaint should not be frivolous (playful) or

vexations (Irritation/anger) in nature.

CCP604(B).33 26
 Summary

 The ombudsman scheme was introduced by RBI with

a view to protect the interest of the customers.
 The customer can approach the ombudsman if he
has any grievances.
 The complaint should be in writing and supported by
documents, if any.

CCP604(B).33 27
Summary

 He should specify his address and the bank branch

address clearly.

 He should also specify the loss incurred to him.

 The complaint should not be frivolous or vexations in

nature.

CCP604(B).33 28
Quiz

 When the Ombudsman scheme was started?

 14th June, 1945.

 Who introduced the scheme?

 Reserve Bank of India.

 Who appoints ombudsman?

 RBI
CCP604(B).33 29
Quiz
 What is the tenure of ombudsman?

 3 years and will be eligible for extension for a further

period of 2 years.

 What is the maximum of age limit of ombudsman.

 65 years.

CCP604(B).33 30
Frequently Asked Questions

 Briefly explain about the banking ombudsman scheme.

 Explain the procedure to lodge a complaint to Banking

Ombudsman.

CCP604(B).33 31