Banking Ombudsman Scheme

The banking Ombudsman Scheme was first introduced in the year 1949 in section 35A of the banking regulation act. Aspirants who wish to work in the field of finance and banking are required to have a thorough knowledge of the banking Ombudsman scheme.

If you ever found yourself wondering “what is the ombudsman meaning?” then fear not, we will explore the topic in brief in this article. The government appoints a banking Ombudsman who is a very senior official. The particular schemes hope to offer a remedy to people who are in dispute with any bank which comes under the country’s services. When no definite solution is being provided by the banks in terms of settlement consumers can hope to bring up their cases to the banking Ombudsman of the country.

Some important facts about the Banking Ombudsman:

1. The concept of a banking Ombudsman was first implemented and brought into effect by the reserve bank of India in the year 2006. The particular date on which it came into existence is the 1st of January 2006.
2. When a banking Ombudsman is appointed, he may only serve for a period not exceeding three years and be eligible for extension for a further period not exceeding two years subject to an overall age limit of 65 years.
3. This particular service which is provided to every consumer is completely free of charge.
4. The scheme known as banking Ombudsman applies to all rural, commercial, regional, and cooperative banks all across the country.

The grounds on which a complaint can be filed:

1. Non-adherence to the rules and regulations are set by the Reserve Bank of India for the fields of business and banking, various RBI complaints are also included.
2. Forced or wrong closure of deposit accounts of a customer without any prior notice or a viable specific reason.
3. Banks reject the application for a loan of any type without any valid or justified reasons.
4. Refusing to open new deposit accounts for a consumer without any specific reason.
5. Charging any sort of fee or commission by the consumer which the bank has no authority to charge.
6. Non-adherence to any instructions provided by the reserve bank of India concerning services such as credit cards, debit cards, and any other matter relating to ATM transactions.

The precondition required for filing complaints:

1. The complaint filed has been in written form and sent to the bank as well. The complaint should be rejected or not have received a reply for over 1 month, consumers can choose to plead to the Ombudsman even if they are not satisfied with the response of the banks.
2. The complaint is not similar to any other complaint which is currently being looked upon by courts or any tribunals.
3. The compensation in each complaint is reserved for an amount not exceeding INR 1 lakh.
4. The intentions of the complaint should be strictly genuine and should have no inappropriate or malicious intentions.

How to file a complaint?

Who can file the complaint: the complaint should be made to the banking Ombudsman under whose jurisdiction the bank is present. The complaint can be made by the consumer himself or he/she can choose to hire legal representatives.

Details to be provided: the complaint should be made through an electronic medium. The complaint form should have the signature, address, name of the complainant, and the address, name, and form of grievance caused by the party involved. The complainant is also advised to form copies of the complaint and submit them to the office of the banking Ombudsman.

The duties of the Banking Ombudsman:

1. The banking Ombudsman is required to act within the laws stated and laid down by the reserve bank of India and its authorities. All laws, directions, and instructions of the reserve bank of India are to be followed at all times even in the cases of an RBI complaint.
2. If the Ombudsman chooses to give an award to the complainant, then he/she should state solid reasons why they choose to do so.
3. Though, the Ombudsman can award additional compensations to the complainant regarding the fields of mental stress, physical agony, harassment, and the expenses incurred by the complainant in the due process of the complaint being finalised.

Conclusion

Many people ask about the Ombudsman’s meaning when reading about the financial world. A banking Ombudsman is a person appointed by the government of our country who serves consumer complaints regarding various baking regulations in our country. As the filing of a complaint to the banking Ombudsman is free of cost it has helped millions of people since its implementation.