(Updated as on July 14, 2017)
Q.1 What is the Banking Ombudsman Scheme?
Ans: The Banking Ombudsman Scheme is an expeditious and inexpensive forum for bank customers for resolution of 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. Presently the Banking Ombudsman Scheme 2006 (As amended upto July 1, 2017) is in operation.
Q.2 Who is a Banking Ombudsman?
Ans: The Banking Ombudsman is a senior official appointed by the Reserve Bank of India to redress customer complaints against deficiency in certain banking services covered under the grounds of complaint specified under Clause 8 of the Banking Ombudsman Scheme 2006 (As amended upto July 1, 2017).
Q.3 How many Banking Ombudsmen have been appointed and where are they located?
Ans: As on date, twenty Banking Ombudsmen have been appointed with their offices located mostly in state capitals. The addresses and contact details of the Banking Ombudsman offices have been provided under Annex I of the Scheme.
Q.4 Which are the banks covered under the Banking Ombudsman Scheme, 2006?
Ans: All Scheduled Commercial Banks, Regional Rural Banks and Scheduled Primary Co-operative Banks are covered under the Scheme.
Q.5 What are the grounds of complaints?
Ans: The Banking Ombudsman can receive and consider any complaint relating to the following deficiency in banking services:
A customer can also lodge a complaint on the following grounds of deficiency in service with respect to loans and advances
Q.6 When can one file a complaint?
Ans: One can file a complaint before the Banking Ombudsman if the reply is not received from the bank within a period of one month after the bank concerned has received one’s complaint, or the bank rejects the complaint, or if the complainant is not satisfied with the reply given by the bank.
Q.7 When will one’s complaint not be considered by the Ombudsman?
Ans: One’s complaint will not be considered if:
a. One has not approached his bank for redressal of his grievance first.
b. One has not made the complaint within one year from the date of receipt of the reply of the bank or if no reply is received, and the complaint to Banking Ombudsman is made after the lapse of more than one year and one month from the date of complaint made to the bank.
c. The subject matter of the complaint is pending for disposal / has already been dealt with at any other forum like court of law, consumer court etc.
d. Frivolous or vexatious complaints.
e. The institution complained against is not covered under the scheme.
f. The subject matter of the complaint is not pertaining to the grounds of complaint specified under Clause 8 of the Banking Ombudsman Scheme. If the complaint is for the same subject matter that was settled through the office of the Banking Ombudsman in any previous proceedings.
Q.8 What is the procedure for filing the complaint before the Banking Ombudsman?
Ans: One can file a complaint with the Banking Ombudsman simply by writing on a plain paper. One can also file it online at (“click here to lodge a complaint”) or by sending an email to the Banking Ombudsman. There is a form along with details of the scheme in our website. However, it is not mandatory to use this format.
Q.9 Where can one lodge his/her complaint?
Ans: One may lodge his/ her complaint at the office of the Banking Ombudsman under whose jurisdiction, the bank branch complained against is situated.
For complaints relating to credit cards and other types of services with centralized operations, complaints may be filed before the Banking Ombudsman within whose territorial jurisdiction the billing address of the customer is located. (Click here for address and area of operation of the Banking Ombudsman)
Q.10 Can a complaint be filed by one s authorized representative?
Ans: Yes. The complainant can be filed by one s authorized representative (other than an advocate).
Q.11 Is there any cost involved in filing complaints with Banking Ombudsman?
Ans: No. The Banking Ombudsman does not charge any fee for filing and resolving customers’ complaints.
Q.12 Is there any limit on the amount of compensation as specified in an Award?
Ans: The amount, if any, to be paid by the bank to the complainant by way of compensation for any loss suffered by the complainant is limited to the amount arising directly out of the act or omission of the bank or ₹ 20 lakhs (₹ Two Million), whichever is lower.
Q.13 Can compensation be claimed for mental agony and harassment?
Ans: The Banking Ombudsman may award compensation not exceeding ₹ 1 lakh (₹ One Hundred Thousand) to the complainant for mental agony and harassment. The Banking Ombudsman will take into account the loss of the complainant’s time, expenses incurred by the complainant, harassment and mental anguish suffered by the complainant while passing such award.
Q.14 What details are required in the application?
Ans: Name and address of the complainant, the name and address of the branch or office of the bank against which the complaint is made, facts giving rise to the complaint supported by documents, if any, the nature and extent of the loss caused to the complainant, the relief sought from the Banking Ombudsman and a declaration about the compliance with conditions which are required to be complied with by the complainant under Clause 9(3) of the Banking Ombudsman Scheme.
Q.15 What happens after a complaint is received by the Banking Ombudsman?
Ans: The Banking Ombudsman endeavours to promote, through conciliation or mediation, a settlement of the complaint by agreement between the complainant and the bank named in the complaint.
If the terms of settlement (offered by the bank) are acceptable to one in full and final settlement of one’s complaint, the Banking Ombudsman will pass an order as per the terms of settlement which becomes binding on the bank and the complainant.
Q.16 Can the Banking Ombudsman reject a complaint at any stage?
Ans: Yes. The Banking Ombudsman may reject a complaint at any stage if it appears to him that a complaint made to him is:
Q.17 What happens if the complaint is not settled by agreement?
Ans: If a complaint is not settled by an agreement within a period of one month, the Banking Ombudsman proceeds further to pass an Award. Before passing an award, the Banking Ombudsman provides reasonable opportunity to the complainant and the bank, to present their case.
It is up to the complainant to accept the award in full and final settlement of or to reject it.
Q.18 Is there any further recourse available if one rejects the Banking Ombudsman’s decision?
Ans: Any person aggrieved by an Award issued under Clause 12 or the decision of the Banking Ombudsman rejecting the complaint for the reasons specified in sub-clause (d) to (g) of Clause 13 of the Banking Ombudsman Scheme 2006 (As amended up to July 1, 2017) can approach the Appellate Authority. The Appellate Authority is vested with a Deputy Governor of the RBI.
Other recourse and/or remedies available to him/her as per the law can also be explored. The bank also has the option to file an appeal before the Appellate Authority under the Scheme.
Q.19 Is there any time limit for filing an appeal?
Ans: One can file the appeal against the award or decision of the Banking Ombudsman rejecting the complaint within 30 days of the date of receipt of the Award, The Appellate Authority may, if he/ she is satisfied that the applicant had sufficient cause for not making an application for appeal within time, also allow a further period not exceeding 30 days.
Q.20 How does the appellate authority deal with the appeal?
The appellate authority may:
i. dismiss the appeal; or
ii. allow the appeal and set aside the Award; or
iii. send the matter to the Banking Ombudsman for fresh disposal in accordance with such directions as the appellate authority may consider necessary or proper; or
iv. modify the Award and pass such directions as may be necessary to give effect to the modified award; or
v. pass any other order as it may deem fit.