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Banking Ombudsman Scheme

Objective

This Scheme is introduced for resolving customer grievances in relation to services provided by the entities regulated by the Reserve Bank of India in an expeditious and cost-effective manner.

EXTENT AND APPLICATION OF THE SCHEME

  • The scheme shall extend to the whole of India
  • The Scheme shall apply to the services provided by a Regulated Entity in India to its customers under the provisions of the Reserve Bank of India Act,1934, the Banking Regulation Act, 1949, the Payment and Settlement Systems Act,2007,and the Credit Information Companies (Regulation) Act, 2005 (30 of 2005).

SUSPENSION OF THE SCHEME

  • The Reserve Bank, if it is satisfied that it is expedient so to do, may by order suspend for such period as may be specified in the order, the operation of all or any of the clauses of the Scheme, either generally or in relation to any specified Regulated Entity.
  • The Reserve Bank may, by order, extend from time to time, the period of any suspension ordered as aforesaid by such period, as it may deem fit.

APPOINTMENT AND TENURE OF OMBUDSMAN AND DEPUTY OMBUDSMAN

  • The Reserve Bank may appoint one or more of its officers as Ombudsman and Deputy Ombudsman to carry out the functions entrusted to them under the Scheme.
  • The appointment of Ombudsman or the Deputy Ombudsman ,as the case may be, shall be made for a period not exceeding three years at a time.

POWERS AND FUNCTIONS OF THE OMBUDSMAN

  • The Ombudsman/ Deputy Ombudsman shall consider the complaints of customers of Regulated Entities relating to deficiency in service.
  • There is no limit on the amount in a dispute that can be brought before the Ombudsman for which the Ombudsman can pass an Award. However, for any consequential loss suffered by the complainant, the Ombudsman shall have the power to provide compensation up to Rupees 20 lakh, in addition to, up to Rupees One lakh for the loss of the complainant’s time, expenses incurred and for harassment/mental anguish suffered by the complainant.

WHO CAN FILE A COMPLAINT

Any customer aggrieved by an act or omission of a Regulated Entity resulting in deficiency in service may file a complaint under the Scheme personally or through an authorised representative. (Authorised Representative means a person, other than an advocate, duly appointed and authorised in writing to represent the complainant in the proceedings before the Ombudsman)

PROCEDURE FOR FILING A COMPLAINT

  • The complaint may be lodged online through the portal designed for the purpose (https://cms.rbi.org.in).
  • The complaint may also be submitted through electronic or physical mode to the Centralised Receipt and Processing Centre as notified by the Reserve Bank. The complaint, if submitted in physical form, shall be duly signed by the complainant or by the authorised representative. The complaint shall be submitted in electronic or physical mode in such format and containing such information as may be specified by Reserve Bank.
  • A complaint under the Scheme shall not lie unless:

    • (i) the complainant had, before making a complaint under the Scheme, made a written complaint to the Regulated Entity concerned and the complaint was rejected wholly or partly by the Regulated Entity, and the complainant is not satisfied with the reply; or the complainant had not received any reply within 30 days after the Regulated Entity received the complaint; and

    (ii) the complaint is made to the Ombudsman within one year after the complainant has received the reply from the Regulated Entity to the complaint or, where no reply is received, within one year and 30 days from the date of the complaint.

  • The complaint is not in respect of the same cause of action which is already-

    • (i) Pending before an Ombudsman or settled or dealt with on merits, by an Ombudsman, whether or not received from the same complainant or along with one or more complainants, or one or more of the parties concerned;

    (ii) pending before any Court, Tribunal or Arbitrator or any other Forum or Authority; or, settled or dealt with on merits, by any Court, Tribunal or Arbitrator or any other Forum or Authority, whether or not received from the same complainant or along with one or more of the complainants/parties concerned;

  • the complaint is not abusive or frivolous or vexatious in nature;
  • the complaint to the Regulated Entity was made before the expiry of the period of limitation prescribed under the Limitation Act, 1963, for such claims;
  • the complaint is lodged by the complainant personally or through an authorised representative other than an advocate unless the advocate is the aggrieved person.

RESOLUTION OF COMPLAINTS

  • The Ombudsman/Deputy Ombudsman shall endeavour to promote settlement of a complaint by agreement between the complainant and the Regulated Entity through facilitation or conciliation or mediation.
  • The proceedings before the Ombudsman shall be summary in nature and shall not be bound by any rules of evidence. The Ombudsman may examine either party to the complaint and record their statement.
  • In case the complaint is not resolved through facilitation, such action as may be considered appropriate, including a meeting of the complainant with the officials of Regulated Entity, for resolution of the complaint by conciliation or mediation may be initiated.
  • The parties to the complaint shall cooperate in good faith with the Ombudsman/Deputy Ombudsman, as the case may be, in resolution of the dispute and comply with the direction for production of any evidence and other related documents within the stipulated time.
  • If any amicable settlement of the complaint is arrived at between the parties, the same shall be recorded and signed by both the parties and thereafter, the fact of settlement may be recorded, annexing thereto the terms of settlement, directing the parties to comply with the terms within the stipulated time.
  • The complaint would be deemed to be resolved when:

    • (a) it has been settled by the Regulated Entity with the complainant upon the intervention of the Ombudsman; or

    (b) the complainant has agreed in writing or otherwise (which may be recorded) that the manner and the extent of resolution of the grievance is satisfactory; or

    (c) the complainant has withdrawn the complaint voluntarily.

REJECTION OF A COMPLAINT

  • The Deputy Ombudsman or the Ombudsman may reject a complaint at any stage if it appears that the complaint made:

    • (a) Is non-maintainable or

    (b) Is in the nature of offering suggestions or seeking guidance or explanation.

  • The Ombudsman may reject a complaint at any stage if:

    • (a) In his opinion there is no deficiency in service

    (b) The compensation sought for the consequential loss is beyond the power of the Ombudsman to award the compensation or

    (c) the complaint is not pursued by the complainant with reasonable diligence; or

    (d) the complaint is without any sufficient cause or

    (e) the complaint requires consideration of elaborate documentary and oral evidence and the proceedings before the Ombudsman are not appropriate for adjudication of such complaint or

    (f) in the opinion of the Ombudsman there is no financial loss or damage, or inconvenience caused to the complainant.

AWARD BY THE OMBUDSMAN

  • Unless the complaint is rejected, the Ombudsman shall pass an Award in the event of:

    • (a) non-furnishing of documents/ information or

    (b) the matter not getting resolved based on records placed, and after affording a reasonable opportunity of being heard to both the parties.

  • The Ombudsman shall not have the power to pass an Award directing payment by way of compensation, an amount which is more than the consequential loss suffered by the complainant or Rupees 20 lakh whichever is lower. The compensation that can be awarded by the Ombudsman shall be exclusive of the amount involved in the dispute.
  • The Ombudsman may also award a compensation not exceeding Rupees one lakh to the complainant, taking into account the loss of the complainant’s time, expenses incurred, harassment and mental anguish suffered by the complainant.
  • A copy of the Award shall be sent to the complainant and the Regulated Entity.
  • The Award passed shall lapse and be of no effect unless the complainant furnishes a letter of acceptance of the Award in full and final settlement of the claim to the Regulated Entity concerned, within a period of 30 days from the date of receipt of the copy of the Award.
  • The Regulated Entity shall comply with the Award and intimate compliance to the Ombudsman within 30 days from the date of receipt of the letter of acceptance from the complainant.

APPEAL BEFORE THE APPELLATE AUTHORITY

  • The complainant may, aggrieved by an Award, within 30 days of the date of receipt of the Award or rejection of the complaint, prefer an appeal before the Appellate Authority. Provided that the Appellate Authority may, if he is satisfied that the complainant had sufficient cause for not making the appeal within the time, may allow a further period not exceeding 30 days.
  • The Appellate Authority may, after giving the parties a reasonable opportunity of being heard:

    • (a) Dismiss the appeal or

    (b) Allow the appeal and set aside the Award or order of the Ombudsman or

    (c) Remand the matter to the Ombudsman for fresh disposal in accordance with such directions as the Appellate Authority may consider necessary or proper; or

    (d) Modify the order of the Ombudsman or Award and pass such directions as may be necessary to give effect to the order of the Ombudsman or Award so modified; or

    (e) Pass any other order as it may deem fit.

  • The order of the Appellate Authority shall have the same effect as the Award passed by Ombudsman.

REGULATED ENTITY TO DISPLAY SALIENT FEATURES OF THE SCHEME FOR KNOWLEDGE OF THE PUBLIC

  • The Regulated Entity shall appoint a Principal Nodal Officer at their head office who shall not be a rank less than a General Manager or an officer of equivalent rank and shall be responsible for representing the Regulated Entity and furnishing information on be half of the Regulated Entity in respect of complaints filed against the Regulated Entity.
  • The Regulated Entity shall display prominently for the benefit of their customers at their branches/ places where the business is transacted, the name and contact details (Telephone/ mobile number and E-mail ID) of the Principal Nodal Officer along with the details of the complaint lodging portal of the Ombudsman (https://cms.rbi.org.in).
  • The Regulated Entity to which the Scheme is applicable shall ensure that the salient features of the Scheme are displayed prominently in English, Hindi and the regional language in all its offices, branches and places where the business is transacted in such a manner that a person visiting the office or branch has adequate information on the Scheme.
  • The Regulated Entity shall ensure that a copy of the Scheme is available in all its branches to be provided to the customer for reference upon request.
  • The salient features of the Scheme along with the copy of the Scheme and the contact details of the Principal Nodal Officer shall be displayed and updated on the website of the Regulated Entity.
Details of the Scheme