Banking Awareness 2017 – Banking Ombudsman Scheme 2006 | 10 Important Features Explained

Hello and welcome to exampundit. Today we will elaborate each and every important things about Banking Ombudsman Scheme 2006.

1. The Banking Ombudsman is person
   appointed by the Reserve Bank of India to redress customer complaints against
   certain deficiency in banking services.
2. The Banking Ombudsman is a quasi-judicial
   authority. It
   has power to summon both the parties – bank and its customer, to
   facilitate resolution of complaint through mediation.
3. All Scheduled Commercial Banks, Regional Rural Banks and Scheduled
   Primary Co-operative Banks are covered under the Scheme.
4. Banking Ombudsman will consider complaints from Non-Resident
   Indians having accounts in India in relation to their remittances from
   abroad, deposits and other bank-related matters.
5. A customer can file his 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 his
   representation, or the bank rejects the complaint, or the complainant is not
   satisfied with the reply given to him by the bank.
6. The limit of compensation is Rs 10 lakh.
7. The Banking Ombudsman may award compensation not
   exceeding Rs 1 lakh to the complainant only in the case of complaints
   relating to credit card operations for mental agony
   and harassment.
8. If a complaint is not settled by an agreement within a period of one month, the Banking Ombudsman proceeds
   further to pass an award.
9. If one is not satisfied with the decision passed by the Banking
   Ombudsman, one can approach the appellate authority against the Banking
   Ombudsmen’s decision. Appellate Authority is vested with a Deputy Governor of
   the RBI.
10. If one is aggrieved by the
    decision, one may, within 30 days of the
    date of receipt of the award, appeal against the award before the appellate
    authority.

• 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 non-observance 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 by the bank or its subsidiaries to the
  instructions of Reserve Bank on ATM/Debit card operations or credit card
  operations;
• non-disbursement or delay in disbursement of pension (to the
  extent the grievance can be attributed to the action on the part of the bank
  concerned, but not with regard to its employees);
• 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-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;

• compensation sought from the Banking Ombudsman is
  beyond  Rs 10 lakh .
• requires consideration of elaborate documentary and oral
  evidence and the proceedings before the Banking Ombudsman are not appropriate
  for adjudication of such complaint
• without any sufficient cause
• that it is not pursued by the complainant with reasonable
  diligence
• in the opinion of the Banking Ombudsman there is no loss or
  damage or inconvenience caused to the complainant.