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Everything You Need To Know About Banking Ombudsman

by Arpita Wadhawan
Banking Ombudsman

Banking Ombudsman scheme or Banking ombudsman is a quasi-judicial introduced by the Indian government to solve the complaints made by the customers from different banks across the country. This scheme gives the authority to resolve the problems occurring within a banking institution and was first introduced in the year 1995, it was revised in the year 2002. Banking ombudsman scheme 2006 was introduced and was later amended on 1st July 2017 which is still being followed in various states across the country.

How Banking ombudsman works?

The Reserve Bank of India (RBI) assigns a senior government official, a banking ombudsman to the customer so that they can solve the complaint or issue with a certain banking institute under Clause 8 of the Banking Ombudsman Scheme 2006.  All commercial banks, regional rural banks, and primary Co-operative banks come under the jurisdiction of a Banking Ombudsman. Banking Ombudsman officials are located in the state capital across the nation so that they can help out many customers at one go. The complaints which come under the jurisdiction of a Banking Ombudsman are as follows:

  • When payment for cheques and bills are being delayed or has not been made by the bank
  • Banks not being able to or delay in providing the services stated and written by the banks
  • When banks don’t authenticate the guarantee letter for credit commitment
  • Not opening deposit account for customers without any valid reason.
  • Being charged for service provided by the bank without any prior notice to the customer

and other variety of complaints can be registered by the customer with the help of the Banking Ombudsman scheme 2006.

A consumer, first, should approach the bank to address his or her problem if the bank if not able to provide a proper solution, only then he or she can approach the RBI for Banking Ombudsman scheme. A customer cannot approach the RBI after a year without registering a complaint as it will not be considered by the bank or by the RBI. Complaints against the banking institutes which are not under the jurisdiction of the Banking Ombudsman scheme 2006 would not be considered along with the complaints which don’t lie under Clause 8 of the Banking Ombudsman Scheme 2006

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