Complaints to Banking Ombudsman set to increase as RBI amends the scheme
Sai Krishna Muthyanolla
June 28, 2017
The RBI has amended the Banking Ombudsman scheme to include additional issues as grounds for a complaint. The number of complaints is set to increase with these changes.
The Reserve Bank of India (RBI) has recently amended the Banking Ombudsman Scheme to include complaints relating to Misselling, Mobile/Electronic Banking. With the inclusion of these issues, the complaints to the Banking Ombudsman are set to increase. In 2015-16, more than 90000 complaints were received by the Banking Ombudsman across the country.
What is Banking Ombudsman Scheme?
The Banking Ombudsman scheme was introduced in 2006 to enable resolution of complaints in case of certain services rendered by banks and to facilitate the satisfaction or settlement of such complaints. Before approaching the Ombudsman, the complainant has to make a written representation to the bank. If the bank has rejected the complaint or has not responded within one month, then a complaint can be lodged with the Ombudsman.
What kind of issues are covered by the Banking Ombudsman Scheme?
The grounds for complaint are well defined in the scheme document. A complaint can be made on one of the following grounds
With the recent amendment, the RBI has included the following as possible grounds for a complaint.
With these new inclusions, the scope has widened and the number of complaints is set to increase in the coming years.
How does one file a complaint with the Banking Ombudsman?
A complaint can be lodged with any of the 20 Banking Ombudsman offices based on the jurisdiction of the bank. The complaint can be filed online or offline. Relevant documentary proof has to be enclosed to support the claims. The Ombudsman may also call for additional documentation if required. It is advisable that a complainant go through the compendium of cases handled by the various Banking Ombudsman offices in the past to get an idea of the kind of cases dealt by the Ombudsman.
The Ombudsman can pass an award directing payment of compensation. The amount of compensation cannot be  more than the actual loss suffered by the complainant or Rs 20 lakh, whichever is lower. The compensation awarded  will be exclusive of the amount involved in the dispute. The Ombudsman can also award compensation in addition to the above to the tune of Rs 1 lakh taking into account the loss of the complainant’s time, expenses incurred by the complainant, harassment and mental agony suffered by the complainant.