Last updated on October 9th, 2023 at 01:00 pm
Reserve Bank introduced the Integrated Ombudsman Scheme, 2021 to resolve the issues faced by customers in banks. It is an appellate authority set up by Reserve Bank of India (RBI) to redress the customer complaints on service provided by Banks.
Integrated Ombudsman Scheme, 2021 is introduced for providing easy and cost free redress mechanism against a lacking of service provided in Banking Sector.
What is Integrated Ombudsman Scheme, 2021?
The Ombudsman concept in Banking Sector is first introduced in 2006 by RBI to resolve irregularities in banking sector. The scheme further got several amendments to cover more areas.
But in 2021 RBI decided to integrate all the amendments introduced to create a single appellate authority for all services.
Thus Integrated Ombudsman Scheme, 2021 is introduced by combining three existings ombudsman schemes.
- The Banking Ombudsman Scheme, 2006
- The Ombudsman Scheme for Non Banking Financial Companies, 2018
- The Ombudsman Scheme for Digital Transaction, 2019
Who is Banking Ombudsman?
Banking Ombudsman is an official appointed by RBI on its behalf for resolving the customer grievance against banks and Financial Institutions.
The reserve bank appoints its senior officers as a Ombudsman and Deputy Ombudsman to carry out the functions entrusted to them. The banking Ombudsman can have a post for the maximum period of three years.
When to Make Complaint with Ombudsman?
If you are having issues with the service of your bank, the first step you want to do is to contact your branch and make a complaint.
Because the banks are now cautious about customer complaints and in most cases you can get the remedy at your branch itself.
If your complaint is not resolved by your branch or in the way you wanted it you can approach the Banking Ombudsman. You can reach the BO in the following cases.
- Bank does not provide any reply to the complaint submitted for more than 30 days.
- Bank Rejected the complaint.
- Bank provides resolution. But the complainant is not satisfied with the resolution provided by the bank.
Types of Complaints Accepted
The introduction of Internal Ombudsman Scheme, 2021 have done away with the the grounds under which you can make complaint. Thus you can make a complaint against a financial institution if there is a deficiency in service or regulation.
The following are some of the situations under which you can make complaint.
- Non-payment or inordinate delay in the payment or collection of cheques, drafts, bills etc.
- Non-acceptance, without sufficient cause, of small denomination notes tendered for any purpose, and for charging of commission in respect thereof.
- Non-acceptance, without sufficient cause, of coins tendered and for charging of commission in respect thereof.
- Non-payment or delay in payment of inward remittances.
- Failure to issue or delay in issue of drafts, pay orders or bankers‟ cheques;
- Non-adherence to prescribed working hours
- Failure to provide or delay in providing a banking facility (other than loans and advances) promised in writing by a bank or its direct selling agents
- Delays, non-credit of proceeds to parties’ accounts, non-payment of deposit or nonobservance of the Reserve Bank directives, if any, applicable to rate of interest on deposits in any savings, current or other account maintained with a bank
- Complaints from Non-Resident Indians 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
- Non-adherence to the instructions of Reserve Bank on ATM / Debit Card and Prepaid Card operations in India by the bank or its subsidiaries
- Non-adherence by the bank or its subsidiaries to the instructions of Reserve Bank on credit card operations
- Non-adherence to the instructions of Reserve Bank with regard to Mobile Banking / Electronic Banking service in India by the bank
- Refusal to accept or delay in accepting payment towards taxes, as required by Reserve Bank/Government
- Refusal to issue or delay in issuing, or failure to service or delay in servicing or redemption of Government securities
- Forced closure of deposit accounts without due notice or without sufficient reason
- Refusal to close or delay in closing the accounts
- Non-adherence to the fair practices code as adopted by the bank
- Non-adherence to the provisions of the Code of Bank’s Commitments to Customers issued by Banking Codes and Standards Board of India and as adopted by the bank
- Non-observance of Reserve Bank guidelines on engagement of recovery agents by banks
- Non-adherence to Reserve Bank guidelines on para-banking activities like sale of insurance / mutual fund /other third party investment products by banks.
- Any other matter relating to the violation of the directives issued by the Reserve Bank in relation to banking or other services.
- Non-observance of Reserve Bank Directives on interest rates.
- Delays in sanction, disbursement or non-observance of prescribed time schedule for disposal of loan applications.
- Non-acceptance of application for loans without furnishing valid reasons to the applicant.
- Non-adherence to the provisions of the fair practices code for lenders as adopted by the bank or Code of Bank‟s Commitment to Customers, as the case may be.
- Non-observance of any other direction or instruction of the Reserve Bank as may be specified by the Reserve Bank for this purpose from time to time.
- The Banking Ombudsman may also deal with such other matter as may be specified by the Reserve Bank from time to time.
But the complaints are not restricted to these issues. You can make the complaint if there is any deficiency in services by financial institution.
How to file a Online Complaint with Banking Ombudsman?
Step1: Visit the RBI Complaint Management System Portal: https://cms.rbi.org.in.
Step2: Click on the tab ‘File a Complaint‘ tab. On the next page enter Mobile Number and verify it with OTP.
Step3: Enter your personal details and city on which you want to make a complaint.
Step4: Enter the details of the complaint and upload necessary documents related to the complaints made with the bank and resolution provided.
Step 5: Provide the Dispute amount and compensation sought and give a final Submit. Note the Reference Number generated for future reference.
Alternative Modes of Complaint
It is really advisable to make a Online Complaint with Ombudsman, as it is easy and quick way of making a complaint.
But if you are not comfortable with the online complaint through official website, you can make a complaint through alternative following modes.
Complaint through E-Mail
You can send all the relevent documents and the complaint letter to the RBI’s dedicated mail ID at CRPC@rbi.org.in.
Complaint through Physical Mode
If you want to submit the complaint physically, You can send the relevant documents to the ‘Centralised Receipt and Processing Centre’. The CRPC is present in Chandigar.