Banking Ombudsman as it is the platform where they can lodge a complaint regarding their banking issues. If a customer has filed a complaint with a bank and the entity does not reply within 30 days, or if the customer remains unsatisfied with the resolution, he or she can escalate the complaint to the RBI Ombudsman.
The RBI’s Ombudsman Scheme is for resolving customer grievances against RBI-regulated entities quickly and efficiently. Now let’s discuss this scheme in detail, how you can file complaints, and all other information regarding it.
What is Banking Ombudsman Scheme?
The Integrated Ombudsman Scheme, introduced by the Reserve Bank of India. The Scheme shall be called the Reserve Bank – Integrated Ombudsman Scheme (RB-IOS), under Section 35 A of the Banking Regulation Act, 1949 and introduced in 1995. The unified ombudsman scheme aims to provide redress of customer complaints.
What type of complaints can be filed?
Customers can file various types of complaints under the Ombudsman scheme, including:
- ATM, debit card and credit card issues
- Issues with account opening and operations
- KYC-related issues and account freezes
- Internet and mobile banking transaction failures
- Loan recovery harassment
- Fair practises violations
- Pension-related services offered by the financial institution
- Cheque clearing issues
- Issues with government transactions
- Wrongful selling of financial services
Some types of complaints will not be entertained by the Ombudsman, including:
- Commercial decisions of financial institutions
- Employer-employee disputes
- Matters pending with the court, or already settled by the court
- Services not under the regulation of the RBI
- Complaints without sufficient evidence
Financial Institutions Covered Under The Banking Ombudsman Scheme
Financial institutions of multiple natures are covered under the Banking Ombudsman Scheme. Let’s take a look at them:
Banks Covered Under RB-IOS, 2021:
- All commercial banks, including:
- Public Sector Banks
- Private Sector Banks
- Foreign Banks
- Local Area Banks
- Small Finance Banks
- Payment Banks
- Regional Rural Banks
- Scheduled Primary (Urban) Co-operative Banks
- Non-scheduled Primary (Urban) Co-operative Banks with a deposit size of ₹50 Crore and above
Non-Banking Financial Companies (NBFCs):
- All NBFCs (excluding Housing Finance Companies)
- Must be authorised to accept deposits or have a customer interface
- The asset size of ₹100 crore and above
Payment System Participants:
Includes both banks and non-banks regulated by RBI
Credit Information Companies:
- Defined in the Companies Act, 2013
- Must be granted a Certificate of Registration under the Credit Information Companies (Regulation) Act, 2005
Exclusions:
- Core Investment Companies
- Infrastructure Debt Fund-NBFCs
- NBFC – Infrastructure Finance Companies
- Companies undergoing financial restructuring or closure.
An ombudsman, in simple terms, is usually a government-appointed official that investigates complaints filed by private citizens against companies and financial institutions. The Scheme follows the “One Nation One Ombudsman” approach.
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