Banking Ombudsman is a body created by the RBI to take care of the banking complaints of the general public in India. RBI appoints a senior official or Ombudsman who addresses and resolves all the complaints and grievances of the customers.
The Banking Ombudsman is basically that has been created by RBI to look after banking related complaints that general public may need assistance with. The Ombudsman is a senior official, who has been appointed by the Reserve Bank of India to address grievances and complaints from customers, pertaining deficiencies in banking services. It covers all kinds of banks including public sector banks, Private banks, Rural banks as well as co-operative banks. It was originally established in 1995, it went through some major revisions in 2006 which covered transactions pertaining to complaints of ATM cards, debit cards and credit cards, deduction of service charges by banks without prior intimation, unfair practices of banks and non-compliance by direct sales agents (DSA) of banks for the services that were promised while opening the bank account and more. It was last amended in February, 2009 as of December, 2015 to meet the deficiencies that arise from online banking as well.
How Effective is the Banking Ombudsman?
As of 2015, this body covers almost all kind of complaints for banking services. The team received 79,266 complaints in the year 2009-2010 among which around 94% were handled and only 5-6% of the complaints remained pending for more than quarter of a year. There are currently 15 Banking Ombudsman in India. The customer can complain to the one which comes under the jurisdiction of the Bank location, which means if your bank is in Bangalore, you can complain to the BO from Bangalore region. If your bank or you are dissatisfied with the decision given by the Banking ombudsman, the case can be forwarded to the Appellate Authority within 30 days of BO decision, which is a Deputy Governor of the RBI .
What are the types of complaints accepted by the banking ombudsman?
Some of the assumably trivial issues such as rude behaviour from the bank officials, delays in the disbursing of loans, or even forcing customers to buy insurance policies for processing loans etc., are all addressed by this organization and the process of complaining simple requires filling up a form online or sending in a filled form to a postal address.
You could even be compensated Rs. 1 lakh for being harassed because of any issue or that you may have undergone through mental agony. Some of the possible issue where you could complain at to the Banking Ombudsman include:
- Delay in providing any service
- Charging higher rate of interest linked to BPLR on Housing Loan
- Levying of charges without any notice or Information.
- Any Loss suffered because of lack of coordination from Bank side
- Fraudulent transactions against lost credit card
- Unreasonable credit card charges
- Cheque lost in transit by the bank
- Non-updation of CIBIL records
- Fraudulent transfer of funds by using net banking
- Closure of any account with providing any information or reason
- When bank demands unreasonable proofs for opening of account
- Loss of cheque from Cheque drop box
- Change in terms and conditions without notice or valid reason
- Mis-selling of Insurance products
- Forcing customers to take insurance policies for processing Loans
- Casual approach from Bank on performing its duties
- Rejection of Loans on unfair grounds
- Harassing customer or misbehaviour for any reason
How to lodge the complaint ?
There are two ways of filing your complaint:
- Online Complaint: You can file a complaint to Banking ombudsman on the Internet by filling up the form on their website. Once you are done filling up the form, you may require to upload proofs such as bank rejection letter, bank’s reply or anything else that is in a PDF or TXT format.
Offline Complaint: You need to download the form from the Internet and fill up the complaint. You simply need to include your contact information including your name and address of the bank against which you are lodging the complaint, documentary evidence and the compensation that you require. When done, filling up the form, you can send it to one of the 15 Banking Ombudsman address which comes under your jurisdiction.
Finally, if you have the need or feel to make use of the this organization, do not hesitate if you think that you have a clear situation. However, note that your case will be investigated and if you are filing a false case it will lead to sheer embarrassment. a lot of people are not aware of this body and hence feel and sit helpless. Some minute issues can be solved easily through this body and hence is as useful as it sounds.