The Banking Ombudsman is an independent and impartial authority appointed by the Reserve Bank of India (RBI) to resolve customer complaints against banks and other financial institutions. The Banking Ombudsman scheme was introduced by the RBI in 1995 with the objective of providing an accessible and efficient mechanism for grievance redressal in the banking sector.

Here are some key points about the Banking Ombudsman in India:

  1. Role and Jurisdiction: The Banking Ombudsman is responsible for addressing complaints related to banking services, including deposits, loans, remittances, credit cards, ATM services, and other issues concerning deficiencies in customer service. The Ombudsman’s jurisdiction covers all scheduled commercial banks, regional rural banks, and scheduled primary cooperative banks.
  2. Complaint Redressal: Customers who are not satisfied with the resolution provided by their bank can approach the Banking Ombudsman for resolution. The Ombudsman’s office investigates and mediates the complaint between the customer and the bank, aiming to facilitate a fair and mutually acceptable resolution.
  3. Complaint Eligibility: To file a complaint with the Banking Ombudsman, certain conditions must be met, including the complainant having first approached the bank for redressal and either not receiving a response within a specified time or being dissatisfied with the response received. The complaint should be made within one year from the date of the bank’s response or the date on which the bank should have responded.
  4. Ombudsman’s Powers: The Banking Ombudsman has the authority to summon both the customer and the bank, call for documents and records, and conduct inquiries as necessary to resolve the complaint. The Ombudsman can also recommend compensation for losses suffered by the customer due to the bank’s fault and impose penalties on the bank for any deficiency in service.
  5. Ombudsman’s Decisions: The Banking Ombudsman’s decisions are binding on the bank but not on the customer. If the customer accepts the decision, the bank is obligated to comply with it. However, if the customer is not satisfied with the decision, they can pursue other legal remedies available to them.
  6. Multiple Ombudsman Offices: The RBI has established several Banking Ombudsman offices across different regions in India to cater to complaints from specific areas. Each office has its own designated jurisdiction.

The Banking Ombudsman scheme provides an accessible and cost-effective mechanism for customers to seek redressal for their grievances against banks. It helps in ensuring fair treatment, transparency, and accountability in the banking sector and promotes customer confidence.