The Banking Ombudsman Scheme: Protecting Consumer Rights
by Yuvi K - December 16, 2023
Banking Ombudsman Scheme: Protecting Consumer Rights (बैंकिंग ओम्ब्समन योजना: कन्समर अधिकारों की रक्षा की)
Our banking sector is the foundation for our country’s economy. It plays an integral role in helping individuals and businesses achieve their goals. The banking industry is highly regulated by the government, but despite the many regulations in place very often banks fall short of providing satisfactory services to its customers. Recent incidents, like the infamous PNB fraud, have exposed the inadequacies in the banking system. This has led to the establishment of the Banking Ombudsman Scheme, to protect the customer’s rights from being trampled upon by the banks.
What is The Banking Ombudsman Scheme? (बैंकिंग ओम्ब्समन योजना क्या है?)
The Banking Ombudsman Scheme is launched by the Reserve Bank of India in 1995, and is applicable to all banks in the country. The Scheme allows customers to file a complaint against a bank if they face any problems in getting services from them. The Banking Ombudsman is a representative appointed by the RBI to redress the grievances of the customers. He looks into the complaint and takes corrective action to ensure that the banks follow rules and regulations and there is a fair dealing of the customers.
What types of Complaints are eligible for redressal? (कौन से शिकायतों का सुधार करने के लिए उपयुक्त हैं?)
The Scheme has laid out certain guidelines that customers must follow when filing a complaint. It is applicable to any kind of problem related to banking services like –
- Non-adherence of the provisions of fair practices code
- Non-adherence of the instructions issued by RBI
- Delay in providing services
- Non-payment of dividend declared
- Unfair charges
- Non-adherence of the code of conduct of banks
- Non-payment of DEPOSIT Insurance/ GSLI
What are the Procedure to file the complaint? (शिकायत के लिए क्या प्रक्रिया है?)
The process of filing a complaint is simple and can be done either through online mode, or through postal correspondence. The customer needs to fill in the required details like name, address, contact number, details of the complaint, etc. and submit it to the Banking Ombudsman.
What are the powers of the banking ombudsman? (बैंकिंग ओम्ब्समन के क्षमता क्या हैं?)
Once the complaint is approved, the Banking Ombudsman has the following powers:
- To recommend timely and expeditious decision from the concerned bank
- To award compensation to the customer for any loss suffered due to the misconduct of the bank
- To issue directives to the bank if it does not comply with the Banking Ombudsman’s directives
- To ask the bank for a written explanation within a set time frame for any irregularity committed by the bank
The Benefits of the Banking Ombudsman Scheme (बैंकिंग ओम्ब्समन योजना के फायदे)
The Banking Ombudsman Scheme is immensely beneficial for customers as it acts as a safeguard against the unfair practices of banks. It allows customers to take recourse without having to go to court. With this Scheme in place, customers can approach the Banking Ombudsman instead of resorting to traditional means of legal action. Also, the Scheme is free of cost and the customers are not required to pay any fee to file a complaint.
Conclusion (निष्कर्ष)
The Banking Ombudsman Scheme has been established by the Reserve Bank of India to protect the customers from unfair practices by the banks, and provide timely and expeditious redressal of grievances. The Scheme is immensely beneficial for customers, as it allows them to take recourse without having to go to court. This Scheme is a welcome initiative and provides hope to customers that their grievances will be addressed in a timely manner.
