Banking ombudsman scheme 2021

Reserve Bank - Integrated Ombudsman Scheme, 2021.
Introduction
 Launch Date: The scheme was launched on November 12, 2021, by Prime
Minister Narendra Modi.
 Objective: To provide a cost-free and efficient redressal mechanism for customer
complaints against entities regulated by the Reserve Bank of India (RBI).
Key Features
 Integration: It combines three previous schemes:

1. Banking Ombudsman Scheme, 2006
2. Ombudsman Scheme for Non-Banking Financial Companies, 2018
3. Ombudsman Scheme for Digital Transactions, 2019
 One Nation One Ombudsman: The scheme adopts a jurisdiction-neutral
approach, meaning complaints can be filed without worrying about the
geographical location of the bank or financial institution1.
Reserve Bank - Integrated Ombudsman Scheme, 2021 combined three schemes
Banking Ombudsman Ombudsman Scheme for

Ombudsman Scheme for Non- Digital Transactions,
Scheme, 2006: Banking Financial 2019:
Companies
(NBFCs), 2018:
Purpose: This scheme was Purpose: This scheme Purpose: This scheme was
designed to address aimed to provide a introduced to handle
complaints from customers grievance redressal complaints related to digital
regarding banking services. mechanism for customers transactions.
of NBFCs.
Scope: It covered issues Scope: It covered issues
like unfair banking Scope: It included like unauthorized electronic
practices, delays in complaints related to loans, fund transfers, failure to
services, and non- deposits, and other execute transactions, and
adherence to the fair financial services provided other digital payment-
practices code. by NBFCs. related grievances.
Integration Benefits
 Unified Approach: By combining these three schemes, the RBI has created a
single, streamlined process for addressing customer complaints across different
types of financial services.
 Simplified Process: Customers now have a single point of contact for all their
grievances, regardless of whether they are related to banking, NBFCs, or digital
transactions.
 Efficiency: The integrated scheme aims to resolve complaints more efficiently by
eliminating the need for multiple schemes and processes.
This integration is part of the RBI’s efforts to enhance customer service and ensure a more
robust and user-friendly grievance redressal mechanism.
Kinds of Complaints
The Banking Ombudsman deals with a variety of complaints related to banking services.
Here are some common types of cases:
1. Non-Payment or Delay:
o Non-payment or inordinate delay in the payment or collection of cheques,
drafts, bills, etc1.
2. Account Issues:
o Non-acceptance, without sufficient cause, of small denomination notes and
coins.
o Non-closure of accounts despite clear instructions1.
3. Charges and Fees:
o Levying of charges without prior notice to the customer.
o Complaints about excessive or inappropriate fees and charges
4. Loans and Advances:
o Complaints related to loans and advances, such as non-sanctioning or delay
in sanctioning loans1.
5. ATM and Card Issues:
o Issues related to ATM transactions, such as non-dispensation of cash or
wrong debits.
o Complaints about credit and debit card transactions.
6. Internet and Mobile Banking:
o Problems related to internet banking and mobile banking services1.
7. Fraud and Unauthorized Transactions:
o Complaints about unauthorized or fraudulent transactions.
8. Service Deficiency:
o General deficiency in banking services, such as rude behavior of bank staff,
non-adherence to working hours, etc.
Coverage
 Entities Covered: The scheme covers all commercial banks, Non-Banking

Financial Companies (NBFCs), Payment System Participants, most Primary
(Urban) Cooperative Banks, and Credit Information Companies2.
 Additional Coverage: It also includes Non-Scheduled Primary Co-operative
Banks with a deposit size of ₹50 crore and above.
Pecuniary Jurisdiction
Award Limit: The Banking Ombudsman can pass an award up to ₹20 lakh (2 million
rupees) for the resolution of complaints.
Compensation for Harassment: Additionally, the Ombudsman can award compensation
up to ₹1 lakh (100,000 rupees) for loss of time, expenses incurred, and mental anguish
suffered by the complainant.
This jurisdiction ensures that customers can seek substantial redressal for their grievances
without incurring any cost.
Grievance Redressal Process
 Centralized Complaint Registration: Customers can register their complaints at

a single point of reference2.
 Time Frame: If the complaint is not resolved within 30 days by the regulated
entity, it can be escalated to the Ombudsman1.
Benefits
 Cost-Free: The scheme provides a cost-free redressal mechanism for customers1.

 Simplified Process: The integration of multiple schemes into one simplifies the
grievance redressal process2.
Conclusion
The scheme aims to enhance customer confidence in the financial system by ensuring
timely and effective resolution of complaints.

Banking ombudsman scheme 2021

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Reserve Bank - Integrated Ombudsman Scheme, 2021.

 Integration: It combines three previous schemes:

Reserve Bank - Integrated Ombudsman Scheme, 2021 combined three schemes

Banking Ombudsman Ombudsman Scheme for

 Entities Covered: The scheme covers all commercial banks, Non-Banking

Grievance Redressal Process

 Centralized Complaint Registration: Customers can register their complaints at

 Cost-Free: The scheme provides a cost-free redressal mechanism for customers1.

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