BANKING OMBUDSMAN SCHEME | IMP SCHEMES | GENERAL BANKING TERMS

Summary

The video discusses the Reserve Bank of India’s Integrated Ombudsman Scheme, launched in November 2021 to address customer complaints related to banking, NBFCs, and digital transactions. The scheme consolidates multiple existing ombudsman programs into a single framework, offering a streamlined process for grievance redressal. Customers can file complaints if issues are unresolved by financial institutions within 30 days, with compensation awards up to Rs. 20 lakh for banking services. The video explains the eligibility criteria, scope of complaints, complaint processing, and appeal process, emphasizing the role of RBI in ensuring timely resolutions.

Takeaways

• 😀 The Integrated Ombudsman Scheme was launched by RBI in November 2021 to address customer grievances related to banking services, NBFCs, and digital transactions.
• 😀 Ombudsman refers to an official body where customers can file complaints if their grievances with financial institutions are not resolved within 30 days.
• 😀 If a customer is dissatisfied with the resolution offered by a bank within 30 days, they can approach the Ombudsman for further action.
• 😀 The maximum compensation awarded under the Banking Ombudsman Scheme can be up to ₹20 lakh, depending on the nature of the grievance.
• 😀 The Integrated Ombudsman Scheme merges the three previously separate schemes: Banking Ombudsman Scheme (2006), NBFC Ombudsman Scheme (2018), and Digital Transaction Ombudsman Scheme (2019).
• 😀 The aim of the Integrated Ombudsman Scheme is to provide a unified platform for all types of financial grievances, simplifying the complaint process for customers.
• 😀 Customers can file complaints using a common application form, which can be submitted electronically or physically, regardless of the financial institution involved.
• 😀 The RBI introduced the Integrated Ombudsman Scheme to remove jurisdictional issues and allow customers to approach the Ombudsman for all kinds of grievances.
• 😀 The maximum award amount under the NBFC Ombudsman Scheme is ₹10 lakh, in contrast to ₹20 lakh under the Banking Ombudsman Scheme.
• 😀 The Centralized Receipt and Processing Centre (CRPC) established by RBI in Chandigarh helps process complaints in various languages, further streamlining the complaint resolution process.

Q & A

What is the Integrated Ombudsman Scheme launched by RBI?

The Integrated Ombudsman Scheme is an amalgamation of three existing schemes: the RBI Banking Ombudsman Scheme (2006), the NBFC Ombudsman Scheme (2018), and the Digital Transactions Ombudsman Scheme (2019). It was launched in November 2021 to provide a unified approach for addressing customer grievances related to banking, non-banking financial companies (NBFCs), and digital transactions.

Why was the Integrated Ombudsman Scheme introduced?

The Integrated Ombudsman Scheme was introduced to address deficiencies in customer service and to provide a more streamlined, efficient, and unified grievance redressal mechanism. It combines the previously separate schemes to make the complaint process easier for customers facing issues with banks, NBFCs, or digital transactions.

What is the maximum award amount a customer can receive under the Banking Ombudsman Scheme?

Under the Banking Ombudsman Scheme, the maximum award amount a customer can receive is ₹20 lakhs, which is the highest compensation available for grievances related to banking services.

What should a customer do if they are dissatisfied with a bank’s resolution of their complaint?

If a customer is dissatisfied with the bank’s resolution of their complaint, or if the issue is not resolved within 30 days, they can approach the Banking Ombudsman for further redressal. The Ombudsman will then review the complaint and may issue a compensation award.

What is the eligibility criterion for filing a complaint under the Ombudsman Scheme?

To be eligible for filing a complaint under the Ombudsman Scheme, the complainant must be an individual who has faced an unresolved grievance with a financial institution, such as a bank or NBFC, that has not been satisfactorily addressed within 30 days.

What kind of grievances can be addressed under the Integrated Ombudsman Scheme?

The Integrated Ombudsman Scheme addresses grievances related to deficiencies in banking services, including issues like non-observance of RBI directions, poor service, wrong billing in credit card operations, and issues with digital transactions. It also covers complaints against NBFCs for similar service-related deficiencies.

What happens if a complaint is dismissed under the Ombudsman Scheme?

A complaint can be dismissed under the Ombudsman Scheme if it is found that the issue is not covered under the scheme, or if it does not meet the required criteria. The complaint could also be dismissed if the complaint is submitted after the stipulated timeline or lacks adequate documentation.

How does the Integrated Ombudsman Scheme simplify the complaint process?

The Integrated Ombudsman Scheme simplifies the complaint process by merging three separate grievance redressal mechanisms into a single scheme. Customers can use a common application form to file complaints, whether they are related to banks, NBFCs, or digital transactions.

What are the features of the Integrated Ombudsman Scheme?

The key features of the Integrated Ombudsman Scheme include a common application form for complaints, centralized processing of complaints, and a more streamlined resolution process. Customers can file complaints in physical or electronic format, and the scheme covers a broader range of grievances related to banking, NBFCs, and digital transactions.

Who is responsible for representing the regulated entities under the Ombudsman Scheme?

The Principal Nodal Officer, who holds the position of a General Manager in a public sector bank or an equivalent position, is responsible for representing the regulated entities under the Ombudsman Scheme. They are also responsible for providing the necessary information regarding complaints and any awards issued.