BANKING OMBUDSMAN

PROJECT REPORT ON Banking OMBUDSMAN BACHELOR OF BANKING & INSURANCE (B.B.I.) SEMESTER VI In Partial Fulfillment of the requirement For the Award of Degree of Bachelor of Banking & insurance (BBI) By PRAVIN M. KHARATE ROLL NO.1228026 SHRI SIDH THAKURNATH COLLEGE OF ARTS AND COMMERCE, ULHASNAGAR 421 004

UNIVERSITY OF MUMBAI

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Sr No. TOPICS Page No.

Intoduction to Banking Ombudsman History of banking Ombudsman Powers and juridisction

Literature Rview

Field Study Introduction To Banks Types of Bank Policy for Greivance and Redressals of Customer Comlaints Ombudsman Will and Wont

Types of Ombudsman

20

Consumer protection Act 1986 Rights of Consumers

25

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6 Complaint Redressal Process Procedure for Filling Complaint 30

Banking Ombudsman Scheme Performance of ombudsman

36

Finding And Anaylsis

58

Conclusion

60

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INTRODUCTION TO BANKING OMBUDSMAN

An ombudsman is a person who has been appointed to look into complaints about an organization. Using an ombudsman is a way of trying to resolve a complaint w i t h o u t g o i n g t o c o u r t . Banking Ombudsman is a quasi judicial authority

functioning under Indias Banking Ombudsman Scheme, and the authority was created pursuant to the Government of India to enable a decision by the

resolution of complaints of customers of banks relating to certain services rendered by the banks. The Banking Bankin Ombudsman

Scheme was first introduced in India in 1995, and was revised in 2002 and 2006. In the wake of the failure in the efficient services of the banks, the RBI brought a scheme for the prompt, efficient and courteous services and also to protect the rights of the customers. The Banking Ombudsman is an official authority to investigate the complaint from the customers and address the complaint and thereby bring the solution among the aggrieved parties. So the Banking Ombudsman plays the role of a medi mediator and serves the purpose of reconciliation. The Banking Ombudsman has been defined under clause 4 of the Banking Ombudsman Scheme, 2006.

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HISTORY BANKING OMBUDSMAN IN INDIA:
The Banking Ombudsman Scheme was formally launched in 1995 to provide an alternative cost effective dispute resolution mechanism. The BOS has served the country and its banks banks customers well. The feedback gathered in the course of

administering the scheme has been used by the RBI to modify the scheme with a view to cover the the maximum customer touch points and products. The growing number of complaints under the BOS is an indicator of the increasing awareness of our customers and also the timely action taken by the RBI to focus customer-centric. centric. The

scope of the Banking Ombuds Ombudsman Scheme 2006 was widened to

include deficiencies arising out of internet banking in which, a

customer would also be able to lodge a complaint against the bank for its non-adherence adherence to the

provisions of the Fair Practices Code for lenders or the Code of Bank's Commitment to Customers issued by the Banking Codes and Standards Board of India (BCSBI), as per the Notification dated February 3, 2009. Further, non-observance non observance of the RBI guidelines on engagement of recovery agents by banks has also been brought specifically pecifically under the purview of the Scheme. The amended Scheme, does not include certain banking transactions, such as, failure to honor bank guarantee or letter of credit, etc. since complaints on these areas of banking services are insignificant in number.
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The existing provisions allow the Banking Ombudsman to award compensation for the actual loss suffered by the complainant as a direct consequence of the act of omission or commission of the bank or Rupees Ten Lakh whichever is lower. As per the amended Scheme, the Banking Ombudsman can also award compensation not exceeding Rupees One Lakh to the complainant in the case of complaints arising out of credit card operations, taking into account the loss of the complainant's time, expenses incurred by him as also harassment and mental anguish suffered

ESTABLISHMENT OF OFFICE OF BANKING OMBUDSMAN APPOINTMENT & TENURE

1) The Reserve Bank may appoint one or more of its officers in the rank of Chief General Manager or General Manager to be known as Banking Ombudsmen to carry out the functions

entrusted to them by or under the Scheme.

2) The appointment of Banking Ombudsman under the above Clause may be made for a period not exceeding three years at a time.

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LOCATION OF OFFICE AND TEMPORARY HEADQUARTERS
1) The office of the Banking Ombudsman shall be located at such places as may be specified by the Reserve Bank.

2)

In

order

to

expedite

disposal

of

complaints, the Banking Ombudsman may hold sittings at such places within his area of jurisdiction as may be considered necessary and proper by him in respect of a complaint or reference before him.

JURISDICTION, POWERS AND DUTIES OF BANKINGOMBUDSMAN

POWERS AND JURISDICTION

1) The Reserve Bank shall specify the territorial limits to which the authority of each Banking Ombudsman appointed under Clause 4 of the Scheme shall extend.

2) The Banking Ombudsman shall receive and consider complaints relating to the deficiencies in banking or other services filed on the grounds mentioned in clause 8 and facilitate their satisfaction or settlement by agreement or through conciliation and mediation between the bank concerned and the aggrieved parties or by passing an Award in accordance with the Scheme. Schem

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3) The Banking Ombudsman shall exercise general powers of super intendance and control over his Office and shall be responsible for the conduct of business thereat.

4) The Office of the Banking Ombudsman shall draw up an annual budget for itself in consultation with Reserve Bank and shall exercise the powers of expenditure within the approved budget on the lines of Reserve Bank of India Expenditure Rules, 2005.

5) The Banking Ombudsman shall send to the Governor, Reserve Bank, are port, as on 30th June every year, containing a general review of the activities of his Office during the preceding financial year and shall furnish such other information as the Reserve Bank may direct and the Reserve Bank may, if it considers necessary in the public interest so to do, publish the report and the information received from the Banking Ombudsman in such consolidated form or otherwise as it deems fit.

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LITERATURE REVIEW
The number of studies has been conducted regarding the services of banking ombudsman to their customers. Aparna Meduri (2006) argues that the Banking

Ombudsman under the Banking Ombudsman Scheme and the Consumer Redressal Authorities under the Consumer Protection Act both redresses the cases on deficiency of banking service. However, there exists a difference both in terms of redressal machinery and the procedure for redressal and makes an attempt to give out the reasons why most of the aggrieved bank customers prefer to take shelter under the Consumer Protection Act instead of under their Banking Ombudsmen Scheme, and finally the proposed remedy for it. Chatterjee (2007) critically evaluated various schemes of banking ombudsman schemes in operation from time to time. Singh (2006) found that majority of respondents (63%) surveyed had no knowledge about the bank ombudsman scheme irrespective of their banks and none of the surveyed respondents had ever filed a complaint with bank ombudsman. Khan (2010) suggested that attempts should be made to increase the instances of disputes being resolved by

mediation/conciliation rather than by awards. Further, in the event, if ombudsman has to give an award; it must be made final and binding on the parties with only single appeal allowed to a higher court of law. As far as performance of bank ombudsman is concerned no exhaustive study has been conducted so far.

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INTRODUCTION TO BANKING
INTRODUCTION
The basic services a bank provides are checking accounts, which can be used like money to make payments and purchase goods and services; savings accounts and time deposits that can be used to save money for future use; loans that consumers and businesses can use to purchase goods and services; and basic cash management services such as check check cashing and foreign currency exchange. Four types of banks specialize in offering these basic banking services: commercial banks, savings and loan associations, savings banks, and credit unions.

A broader definition of a bank is any financial institut institution that receives, collects, transfers, pays, exchanges, lends, invests, or safeguards money for its customers. This broader definition includes many other financial institutions that are not usually thought of as banks but which nevertheless

provide one or r more of these broadly defined banking services. These institutions include finance companies, companies, insurance funds, investment investment companies, banks, pension and

security

brokers

dealers, mortgage companies, and real estate investment trusts.

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Banking institutions include commercial banks, savings and loan associations (SLAs), savings banks, and credit unions. The major differences between these types of banks involve how they are owned and how they manage their a s s e t s a n d liabilities.

Assets of banks are typically cash, loans, securities (bonds, but not stocks), and property in which the bank has invested. Liabilities are primarily the deposits received from the banks customers. They are known as liabilities because they are still owned by, and can be withdrawn by, the depositors of the financial institution

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BANKING OMBUDSMAN TYPES OF BANKS

There are various types of banks which operate in our country to meet the financial requirements of different categories of people engaged in agriculture, business, profession, etc. On the basis of functions, the banking institutions in India may be divided into the following types:

1. CENTRAL BANKS
A bank which is entrusted with the functions of guiding and regulating the banking system of a country is known as its Central bank. Such a bank does not deal with the general public. It acts essentially as Governments banker; maintain deposit accounts of all other banks and advances money to other bank s, when needed. The Central Bank provides guidance guidance to other banks whenever they face any problem. It is therefore known as the bankers bank. It advises the Government on monetary and credit policies and decides on the interest rates bank loans. deposits Another and bank for

important

function of the Central Bank is the issuance of currency notes, regulating their

circulation in the country by different methods. No other bank than the Central Bank can issue currency.

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2. COMMERCIAL BANKS
Commercial Banks are banking institutions that accept deposits and grant short-term term loans and advances to their customers. In addition to giving short-term short loans, commercial banks also give medium-term term and long-term long loan to business enterprises.

Commercial banks are of three types:

Public Sector Banks Private Sectors Banks Foreign Banks

3. FOREIGN BANKS
Foreign banks are registered and have their headquarters in a foreign country but operate their branches in our country. Foreign banks are not new phenomena in Indian banking system. Standard charted banks started its

operation in 1858 and citi banks opened its branch in1902. However, globalization and economic policies implemented in late 1980 encouraged many international banks to open there branches here. Foreign banks in India bought the latest la technology an banking practice.

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4. CO- OPERATIVE BANKS
People who come together to jointly serve their common interest often form a co-operative operative society under the Co-operative Co operative Societies Act. When a co-operative operative society engages itself in banking business it is called a Co-operative operative Bank. The society has to obtain obtain a license from the Reserve Bank of India before starting banking business. Any co-operative operative bank as a society is to function under the overall supervision of the Registrar, Co Co-operative

Societies of the State. As regards banking business, the society must st follow the guidelines set and issued by the Reserve Bank of India. There are three types of coco operative banks operating in our country:

Primary Credit Societies Central Co-operative operative Banks State Co-operative operative Banks 5. SPECIALIZED BANKS
There are some banks, which cater to the requirements and provide overall support for setting up business in specific areas of activity. EXIM Bank, SIDBI and NABARD are examples of such banks. They engage themselves in some specific area or activity and thus, are called lled specialized banks.

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Export Import Bank of India (EXIM Bank) Small Industries Development Bank of India (SIDBI) National Bank for Agricultural and Rural Development 6. OFFSHORE BANK BANKS
An offshore bank is a bank located outside the country of residence of the depositor, typically in a low tax jurisdiction (or tax heaven) advantages. advantages include: greater privacy low or no taxation easy access to deposit protection against local political or financial instability that provides These typically financial and legal

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P O L I C Y FO R T TH H E GR G RI I E V A N CE S RE D RE SS S S AL AL OF T H E CUSTOMER COMPLAINTS
In the present scenario of competitive banking, excellence in customer service is the most important tool for sustained business growth. Customer complaints are part of the business life of any corporate entity. This is more so for banks because banks are service organizations. As a service organization, customer service and customer satisfaction should be the prime concern of any bank. The bank believes that providing prompt and efficient service is essential not only to attract new customers, but also to retain existing ones. This policy document aims at minimizing instances of customer complaints and grievances through proper service

delivery and review mechanism and to ensure prompt and redressal grievances. help in of customer The review

complaints mechanism

should in

identifying and

shortcomings

product

features

service delivery. Customer dissatisfaction would spoil banks name and image. The Banks Ba policy on grievance redressal follows the under noted principles:

Customers be treated fairly at all times

Complaints raised by customers are dealt with courtesy and on time

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Customers are fully informed of avenues to escalate their complaints/grievances within the organization and their rights to alternative remedy, if they are not fully satisfied with the response of the bank to their complaints.

Bank will treat all complaints efficiently and fairly as they can damage the banks reputation and business if handled otherwise.

The Bank employees must working good faith and without prejudice to the interests of the customer.

In order to make banks redressal mechanism more meaningful and effective, a structured system needs to be built up towards such end. Such system would ensure that the redressal sought is just and fair and is within the given frame-work of rules and regulation. The policy document would be made available at all branches. All employees of the Bank should be made aware about the Complaint handling process

The customer complaint arises due to:

The attitudinal aspects in dealing with customers

Inadequacy of the functions/arrangements made available to the customers or gaps in standards of services expected and actual services rendered.

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The customer is having full right to register his complaint if he is not satisfied with the services provided by the bank. He can give his complaint in writing, orally or over telephone. If Customers complaint is not resolved within given time or if he is not satisfied with the solution provided by the bank, he can approach Banking Ombudsman with his complaint or other legal avenues available for grievance redressal.

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BANKING OMBUDSMAN OMBUDSMAN WILL & WONTS

THE OMBUDSMAN WILL.

Listen to you Answer your questions Analyze your situation Explain university policies Provide information and advice Suggest appropriate referrals Assist you in pursuing a resolution Recommend changes in policies and procedures

THE OMBUDSMAN WONT.

Does not conduct formal investigations Does not change rules, policies, or procedures Does not participate in any formal hearing or grievance process Does not supersede the authority of other university officials Does not disclose and may not be required to disclose information provided in confidence, except to address an imminent risk of serious harm where there is no other option

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BANKING OMBUDSMAN TYPES OF OMBUDSMAN

BANKING OMBUDSMAN

INSURANCE OMBUDSMAN

S.E.B.I OMBUDSMAN

TYPES OF OMBUDSMAN
INCOME TAX OMBUDSMAN ELECTRICITY OMBUDSMAN

TELECOM OMBUDSMAN

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1) Banking Ombudsman
The Reserve Bank of India (RBI) first introduced the Banking Ombudsman Scheme In1995, which has been revised in 2002 and 2005. The latest revised Scheme has come into force from 1stJan 2006.

2) S.E.B.I. Ombudsman
The Securities Exchange Board of India (SEBI) under section 30 read with sub-section section (1) of section 11 of the the SEBI Act, 1992, has

framed

SEBI 2003,

(Ombudsman) which were

Regulations,

notified on 21st August 2003. The Regulations establishment Ombudsman to redress the provided of the of for office the of in

Grievance

investors

securities and connected matters. The listed companies and registered stock intermediaries have to disclose the name address and other particulars of ombudsman in their for the benefit of the investors.

3) Electricity Ombudsman
The Electricity Regulatory Commission, under section 181 read with sub-section (5) of section 42 of the Electricity Act, 2003, issues guidelines for establishment of forum and Ombudsman for redressal of grievances of Electricity

consumers. The Delhi Regulatory Commission (DERC) vide its

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Notification (Guidelines dated for 11th March, 2006 of has issued of DERC establishment Forum redressal

of grievance of the consumer and Ombudsman) Regulations, 2003. It may be noted that the Ombudsman is the APPELLATE Authority under the Electricity Act2003, and the DERC Regulations, 2003 and therefore an electricity consumer has to first approach the Consumer Grievance Redressal Forum established under the DERC Regulations, 2003.

4) Telecom Ombudsman
The Telecom Regulatory Authority of India Act, 1997, empowers the Telecom Regulatory Authority of India Act 1997, empowers the Telecom Regulatory Authority of India (TRAI) to make the recommendations on laying down the standards of quality of services to be provided by the services providers and conduct the interest of the periodical surveys of Telecom services so as to protect the interest of the consumers. The telecom operators frequently threaten to disconnects the phones and with draw the numbers given t o subscribers if the deadline for payment is missed by a day or there is miscalculation of the tiniest amount. The TRAI is, however, neither empowered to look into the grievances of individual customers nor take action against the operators who do not meet quality of standards As there is no specialized body to redress the grievance of telecom

customers, they have to approach consumer forum setup under THE Consumer Protection Act, 1986, or civil courts for Resolutions adjudication of disputes.

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5) Income Tax Ombudsman
The considering office of government creating Income to t is an Tax protect right.

Ombudsman individual

taxpayers

The Ombudsman will identify issues that increase burden or the create

compliance

problems for taxpayers and bring those issues to the attention of the ministry of Finance. The Ombudsman will make appropriate legislative proposal where necessary and send periodical reports to the Department of Revenue, suggesting appropriate action. It is proposed to initially setup offices of Ombudsman at Delhi, Mumbai, Kolkata and Chennai.

6) Insurance Ombudsman
The Government of India, Minister of Finance,

Department of Economics Affairs, Insurance Division under section 114 (1) of Insurance Act, 1938, has framed the Redressal of Public Grievance Rules, 1998, for appointment of Insurance Ombudsman,

which comes into force with effect from 11th November 1998. The has Insurance started

Ombudsman

functioning from 1999, to

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provide for efficient, cost effective and impartial settlement of claims and grievance of any person against a Life r General Insurance in Public and private sector. The meaning of expression any other person is wider than consumer and therefore, even third party having grievance with respect to an Insurance contract can approach the Ombudsman.

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THE CONSUMER PROTECTION ACT, 1986

The consumer protection Act, 1986 is the history of socio socioeconomic legislation in the country. It is one of the most progressive and comprehensive piece of legislations enacted for the protection of consumers. It was enacted after in-depth in depth study of consumer r number protection of laws in a in

countries

and

consultation with representatives of consumers, trade and industry and extensive discussions within the Government. The Aim of Consumer

Protection Act (CPA) is to address the grievances of the consumers and d protecting them from the

unethical practices/ behavior or unfair trade practices of the manufacturer/ supplier. All the provisions of the Act have come into force from 1 July 1987. The Act was amended in 1991 and 1993. To make the Consumer Protection Act more functional and purposeful, a comprehensive amendment was carried out in December 2002 and brought into force from 15 March 2003. As a sequel, the Consumer Protection Rules, 1987 were also amended and notified on 5 March 2004.Earlier though there were wer several legislations to protect the consumer, but the same never proved adequate to protect consumer and compensate them for their compliances. The act not only enhances the awareness and

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educate the consumer but also provide compensation to them by summary and inexpensive proceedings. Unlike existing laws which are punitive or preventive in nature, the provisions of this Act are compensatory in nature. The act is intended to provide simple, speedy and inexpensive redressal to the consumers' grievance grievances, and relief of a specific nature and award of compensation wherever appropriate to the consumer. It confers upon consumers eight rights i.e.: basic needs, safety, information, choice, representation, redress, consumer education, healthy environment. It provides p remedies to the aggrieved customer in form Replace, Remove, Refund, Redress.

CONSUMER Consumer means any person who,-Buy who, Buy any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised or under any system of deferred payment when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for any

commercial purpose, or Hires any services for a consideration which has been paid or promised or partly paid and partly promised, or under any system includes of deferred payment of and such

any

beneficiary

services other than the person who

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hires the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person.

Remedies Granted under the Consumer Protection Act, 1986 against unfair Trade Practices.
The District Forum / State Commission / National Commission may pass one or more of the following orders to grant relief to the aggrieved consumer :-

1.

To

remove

the

defects

pointed

out

by

the

a p p r o p r i a t e l a b o r a t o r y f r o m goods in question;

2. To replace the goods with new goods of similar

d e s c r i p t i o n w h i c h s h a l l b e free from any defect?

3. To return to the complainant the price, or, as the

c a s e m a y b e , t h e c h a r g e s paid by the complainant;

4. To pay such amount as may be awarded by it as

c o m p e n s a t i o n t o t h e consumer for any loss or injury suffered by the consumer due to negligence of the opposite party;

5.

To

remove

the

defects

or

deficiencies

in

the

services in question;

6.

To

discontinue

the

unfair

trade

practice

or

the

r e s t r i c t i v e t r a d e p r a c t i c e o r not to repeat them;

7. n o t t o o f f e r t h e h a z a r d o u s g o o d s f o r s a l e : 8.
To withdraw the hazardous goods from being

offered for sale

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9. To cease manufacture of hazardous goods and to d e s i s t f r o m offering services which are hazardous in nature; 1 0 . To pay such sum as may be determined by it if it is of the opinion that loss or injury has been suffered by a large number of consumers who are not identifiable conveniently: 11. To issue corrective advertisement to neutralize the

effect of misleading advertisement at the cost of the opposite party responsible for issuing such misleading advertisement; 1 2 . To provide for adequate costs to parties.

RIGHTS OF CONSUMERS
1. Right to Safety 2. Right to Information 3. Right to Redress 4. Right to Consumer Education 5. Right to Basic Needs 6. Right to Safe Environment 7. Right to Choice 8. Right to be Heard

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MACHINERY FOR REDRESSAL OF CONSUMER GRIEVANCES

To provide simple, speedy and inexpensive redressal of consumer grievances, the act envisages three-tier three tier quasi quasi-judicial machinery at the national, state and district levels.

National Consumer Disputes Redressal Commission Commission-known as National Commission. Consumer Disputes Redressal Commission-known known as State Commission. Consumer Disputes Redressal Forums Forums-known known as District Forum.

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COMPLAINT REDRESSAL PROCESS

G RO U N DS O FCU S ST T O M ER E R S C OM OMPL LA AI I NT S C O N SI DE R E D BY BANKING OMBUDSMAN
The Banking Ombudsman can receive and consider any complaint relating to the following deficiency in banking services (including internet banking):

non-payment payment or inordinate delay in the payment or collection of cheques, drafts, bills etc.;

non-acceptance, acceptance,

without

sufficient

cause,

of

small

denomination notes tendered for any purpose, and for charging of commission in respect thereof;

non-acceptance, acceptance, without sufficient cause, of coins tendered and for charging of commission in respect thereof;

non-payment payment or delay in payment of inward remittances remittances ;

failure to issue or delay in issue of drafts, pay orders or bankers cheques;

non-adherence adherence to prescribed working hours ;

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failure to provide or delay in providing a banking facility (other than loans and advances) promised in writing by a bank or its direct selling agents;

complaints from Non-Resident Indians having accounts in India in relation to their remittances from abroad, deposits and other bank-related matters;

levying of charges without adequate prior notice to the customer;

non-adherence

by

the

bank

or

its

subsidiaries

to

the

instructions of Reserve Bank on ATM/Debit card operations or credit card operations;

refusal to accept or delay in accepting payment towards taxes, as required by Reserve Bank/Government;

refusal to issue or delay in issuing, or failure to service or delay in servicing or redemption of Government securities;

forced closure of deposit accounts without due notice or without sufficient reason;

refusal to close or delay in closing the accounts;

non-observance of Reserve Bank guidelines on engagement of recovery agents by banks; and

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non-observance of Reserve Bank Directives on interest rates;

delays

in

sanction,

disbursement

or

non-observance

of

prescribed time schedule for disposal of loan applications;

non-acceptance of application for loans without furnishing valid reasons to the applicant; and

GROUNDS OF CUSTOMERS COMPLAINTS NOT CONSIDERED BY BANKING OMBUDSMAN

Ones complaint will not be considered if:

One has not approached his bank for redressal of his grievance first. One has not made the complaint within one year from the date one has received the reply of the bank or if no reply is received if it is more than one year and one month from the date of representation to the bank. The subject matter of the complaint is pending for disposal / has already been dealt with at any other forum like court of law, consumer court etc. The institution complained against is not covered under the scheme. The subject matter of the complaint is not within the ambit of the Banking Ombudsman. If the complaint is for the same subject matter that was settled through the office of the Banking Ombudsman in any previous proceedings.

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PROCEDURE FOR FILING COMPLAINT
Any person who has a grievance against a bank on any one or more of the grounds mentioned above, may, himself or through his authorized representative (other than an

advocate), make a complaint to the Banking Ombudsman within whose jurisdiction the branch or office of the bank complained against is located.

Complaints arising out of the operations of credit cards, shall be filed before the Banking Ombudsman within whose territorial jurisdiction the billing address of the card holder is located and not the place where the bank concerned or the credit card processing unit is located.

The complaint shall be made in writing duly signed by the complainant or his authorized representative and shall as far as possible be in the form and shall contain such particulars as specify in the Scheme.

The complainant shall file along with the complaint, copies of the documents, if any, which he proposes to, rely upon and also a declaration that the complaint is maintainable as per clause 9(3) of the Scheme..

A complaint can also be made through electronic means.

The complainant shall before making a complaint to the Banking Ombudsman, make a written representation to the bank.
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The complaint can be filed if the bank has rejected the complaint or the complainant had not received any reply within a period of one month after the bank received his representation or if the complainant is not satisfied with the reply given to him by the bank.

The complaint to the Banking Ombudsman is to be made not later than one year after the complainant has received the reply of the bank to his representation or, where no reply is received, not later than one year and one month after the date of the representation to the bank.

The complaint should not be in respect of the same subject matter which was settled or dealt with on merits by the Banking Ombudsman in any previous proceedings whether or not received from the same complainant or along with one or more complainants or one or more of the parties concerned with the subject matter:

The complaint should not pertain to the same subject matter, for which any proceedings before any court, tribunal or arbitrator or any other forum is pending or a decree or Award or order has been passed by any such court, tribunal, arbitrator or forum.

The complaint should not be frivolous or vexatious in nature.

The complaint should be made before the expiry of the period of limitation prescribed under the Indian Limitation Act, 1963 for such claims.
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ONLINE PROCESS FOR FILING THE COMPLAINT
You can complain to Banking Ombudsman online by filling up the form. Once you fill up the form, you can also upload your proofs like bank rejection letter, banks reply or anything else (it has to be PDF or TXT format only). Then the banking ombudsman will give them their complaint number. Because of online service vice the people do not need to visit the ombudsman or post it and wit for reply. The complaint registered. is immediately

REJECTION OF THE COMPLAINT

The Banking Ombudsman may reject a complaint at any stage if it appears to him that the complaint made is; a) Not on the grounds of complaint referred to in clause 8 or otherwise not in accordance with sub clause (3) of clause 9; or b)Beyond the pecuniary jurisdiction of Bank ing

O m b u d s m a n p r e s c r i b e d under clause 12 (5) and 12 (6) or c)Requiring consideration of elaborate documentary and oral evidence and the proceedings before the Banking

Ombudsman are not appropriate for adjudication of such complaint; or d) Without any sufficient cause; or e) That it is not pursued by the complainant with

reasonable diligence; or f) In the opinion of the Banking Ombudsman there is no loss or damage or inconvenience caused to the complainant.

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BANKING OMBUDSMAN SCHEME

INTRODUCTION
The Banking Ombudsman Scheme, 1995 was notified by RBI on June 14, 1995 in terms of the powers conferred on the Bank by Section 35A of the Banking Regulation Act, 1949 to provide for a system of redressal of grievances against banks. The Scheme sought to establish a system of expeditious and inexpensive resolution of customer complaints. The Scheme is in operation since 1995 and has been revised during the years 2002 and 2006. The Scheme is being executed by Banking Ombudsmen appointed by Reserve Bank at 15 centers covering the entire country. As mandated by the Banking Ombudsman Scheme, the Banking Ombudsmen submit an Annual Report on the functioning of their offices every year. Based on such reports, an Annual Report for the Banking Ombudsman Scheme in a whole is prepared at Reserve Bank of India, Central Office. As is being the practice, the Annual Report covers the last five-year period with focus on the current year. Further, as a result of computerization of the functioning of Banking Ombudsman Offices through the Complaint Tracking Software, detailed analysis was possible on the information

pertaining to year 2006-07. With the decision to merge the Banking Ombudsman Offices with that of RBI offices, the accounting period for the Banking Ombudsman Offices was changed from April1-March 31 to July 1-June 30 to be in congruent with that of RBI offices. Accordingly, the information analyzed for the year 2006-07 pertains to the period July 1, 2006 to June 30, 2007.
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SCOPE OF THE SCHEME
The Banking Ombudsman Scheme, 2002 covered all the Regional Rural Banks in addition to all Commercial Banks and Scheduled Primary Co-operative Banks, which were already covered by earlier Banking Ombudsman Scheme, 1995. There is no change in this regard in the Banking Ombudsman Scheme, 2006.In 2006, the Reserve Bank of India announced the revised Banking

Ombudsman Scheme with enlarged scope that included customer complaints on certain new areas, such as, credit card complaints, deficiencies in providing the promised services even by banks' sales agents, levying service charges without prior notice to the customer and non adherence to the fair practices code as adopted by individual banks. The important new grounds of complaints added include credit card issues, failure in providing the promised facilities, non-adherence to fair practices code, levying of excessive charges without prior notice and issues pertaining to accepting payment towards taxes and issuing/servicing of Government securities. The grounds of complaints have been enumerated in Clause 8 of the Banking Ombudsman Scheme, 2006.

THE BANKING OMBUDSMAN SCHEME, 2006

The Scheme is introduced with the object of enabling resolution of complaints relating to certain services rendered by banks and to facilitate the satisfaction or settlement of such complaints.

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SHORT TITLE, COMMENCEMENT, EXTENT ANDAPPLICATION
1) This Scheme may be called the Banking Ombudsman Scheme, 2006 2) It shall come into force on such date as the Reserve Bank may specify. 3) It shall extend to the whole of India. 4) The Scheme shall apply to the business in India of a bank as defined under the Scheme.

SUSPENSION OF THE SCHEME

1) 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 provisions of the Scheme, either generally or in relation to any specified bank. 2) The Reserve Bank may, by order, extend from time to time, the period of any suspension ordered as aforesaid by such period, as it thinks fit.

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AM EN DM E NT P A S S E D B Y RB I F OR T HE C HA N G ES I N BANKING OMBUDSMAN SCHEME, 2006:

AMENDMENT 1: RBI expands Scope of Banking Ombudsman Scheme; Includes Fair Banking Practices.
Date: 26 Dec 2005 The Reserve Bank of India today announced the revised Banking Ombudsman Scheme with enlarged scope to include customer complaints on certain new areas, such as, credit card complaints, deficiencies in providing the promised services even by banks' sales agents, levying service charges without prior notice to the customer and non adherence to the fair practices code as adopted by individual banks. Applicable to all commercial banks, regional rural banks and scheduled primary cooperative banks having business in India, the revised scheme will come into effect from January 1, 2006. In order to increase its effectiveness, the revised Banking Ombudsman Scheme will be fully staffed and funded by the Reserve Bank instead of the banks. Under the revised Banking Ombudsman Scheme, the complainants will be able to file their complaints in any form, including online. The bank customers would also be able to appeal to the Reserve Bank against the awards given by the Banking Ombudsmen. The new scheme provides a forum to bank customers to seek redressal of their most common complaints against banks, including those relating to credit cards, service charges, promises given by the sales agents of banks, but not kept by banks, as also, delays in delivery of bank services. The bank customers would now be able to complain about non-payment or any inordinate delay in payments
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or collection of cheques towards bills or remittances by banks, as also non-acceptance of small denomination notes and coins or charging of commission for acceptance of small denomination notes and coins by banks. The Reserve Bank had first introduced the Banking

Ombudsman Scheme in 1995to provide expeditious and inexpensive forum to bank customers for resolution of their complaints relating to deficiency in banking services. The Scheme was revised in 2002 mainly to cover Regional Rural Banks and to permit review of the Banking Ombudsmens awards against banks by the Reserve Bank. The Banking Ombudsmen currently have their offices in 15 centers. The Reserve Bank is also in an advanced stage of setting up an independent Banking Codes and Standards Board of India to ensure that comprehensive code of conduct for fair treatment to customers are formulated by banks and adhered to. The Reserve Bank of India had announced setting up of the Board in its Annual Policy for 2005-2006 announced by the Governor, Dr Y V Reddy in April 2005.

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AMENDMENT 2: Customers can now appeal against the Banking Ombudsman's Decision.
Date: 24 May 2007 Bank customers can now appeal against the decision of the Banking complaint Ombudsman relating to where he has rejected falling within the the customer's grounds of

matters

complaints specified under the scheme. The Reserve Bank of India has amended the Banking Ombudsman Scheme, 2006 to enable the customers to appeal against the Banking Ombudsman's decision. The amendments are available on the RBI website. Before the scheme was amended, the bank customers could appeal only against the awards given by the Banking Ombudsman. The appellate authority for the Banking Ombudsman Scheme is the Deputy Governor of Reserve Bank of India. It may be recalled that in the Annual Policy for 2007-2008, the Reserve Bank had announced that based on customer feedback, it would amend the Banking Ombudsman Scheme, 2006 to extend the appeal option also to the decisions of the Banking Ombudsman. Originally introduced in 1995, the Banking Ombudsman Scheme enables speedy and cost effective resolution of complaints of bank customers relating to deficiency in bank services. The Scheme now covers all Scheduled Commercial Banks, Regional Rural Banks and Scheduled Primary Co-operative Banks. The customers can also now complain to the Banking Ombudsman against deficiency in almost any banking services, including credit cards, after exhausting the channel available with the bank concerned for resolving their complaints.

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The Reserve Bank has appointed 15 Banking Ombudsmen who are located mostly in State Capitals under the Scheme. The Banking Ombudsman tries to resolve the complaint through

conciliation or mediation and even passes an award if it is not resolved through such settlement.

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AMENDMENT 3: RBI amends Banking Ombudsman Scheme: includes complaints relating to Internet Banking and Non-adherence to BCSBI Code.
Date: 05 Feb 2009

The Reserve Bank of India has widened the scope of its Banking Ombudsman Scheme 2006, to include deficiencies arising out of internet banking. Under the amended Scheme, a customer would also be able to lodge a complaint against the bank for its non-adherence to the provisions of the fair practices code for lenders or the Code of Bank's Commitment to Customers issued by the Banking Codes and Standards Board of India (BCSBI). The BCSBI is an independent and autonomous watchdog set up by the Reserve Bank to monitor and ensure that the codes and standards adopted by the banks for rendering banking services are adhered to in true spirit. As per the amended Scheme, the Banking Ombudsman can award compensation not exceeding Rupees one lakh to the complainant in the case of complaints arising out of credit card operations, taking into account the loss of the complainant's time, expenses incurred by him as also, harassment and mental anguish suffered. Further, non-observance of the Reserve Bank's guidelines on engagement of recovery agents by banks has also been brought specifically under the purview of the Scheme. Any customer who has a grievance against a bank can complain to the Banking Ombudsman in whose jurisdiction the branch of the bank complained against is located. Some banks have centralized certain transactions, like housing loans, credit cards, etc. If there are complaints regarding such transactions, complaints
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would have to be made to the Banking Ombudsman in the State in which the bank customer receives the bill. In addition, the Reserve Bank has simplified the format for lodging complaint to the Banking Ombudsman. Though the complainant need not lodge his complaint in a specific format, the Scheme now provides for an easy-to-fill format for lodging complaints, in case complainants prefer to use it. The jurisdictions of the Banking Ombudsman at Kanpur, New Delhi, Chandigarh, Chennai and Thiruvananthapuram have been

rationalized to include/exclude certain area staking into account the geographical proximity of those areas to the Office of the Banking Ombudsman. The amended Scheme however, does not include certain banking transactions, such as, failure to honour bank guarantee or letter of credit, etc. Complaints on these areas of banking services are insignificant in number.

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PERFORMANCE OF BANKING OMBUDSMAN

INTRODUCTION
The performance of the Offices of the Banking Ombudsman was analyzed on the aspects such as the quantum of complaints handled by them, the timeliness in handling the issues, and appropriateness of the decisions given against the complaints.

Number of Complaints Received

The number of complaints received by the Banking Ombudsman Offices had constantly increased in the last five years. There was more than threefold increase in the number of complaints received in the year 2006-07 07 from the previous year after the Banking Ombudsman Scheme, 2006 was notified. The increasing receipt was also observed in the year 2007-08 08 with a 24% increase from the year 2006-07.The average number of complaints received per Banking Ombudsman Ombudsm Office has also increased from 550 in 2003-04 04 to 3192 in 2007-08. 2007

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Number of complaints received by the Banking Ombudsman Offices

Period

No. of offices of banking ombudsman

Complaints received during the year

No Change from previous year

Average no. of complaints per office

550 704 2115 2576 3192

2003-04 2004-05 2005-06 2006-07 2008-09

15 15 15 15 15

8246 10560 31732 38638 47887

+53% +28% +200% +22% +24%

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The increase in the number of complaints received during the years 2005-06 and 2006-07 can be attributed to new areas such as credit card complaints included and to facilitation of complaint submission by allowing complaint submission in any form including by online and by email allowed in the Banking Ombudsman Scheme, 2006. Per month receipt in the number of complaints received under the BO Scheme2006 was more than thrice the number of complaints received under the Banking Ombudsman Scheme, 2002. The increase in the number of complaints received under the Banking Ombudsman Scheme 2006 as compared to the previous scheme clearly indicates the extent to which the scheme has benefited larger sections of the banking customers. The

comparative effects of the Banking Ombudsman Schemes 2002 and 2006 in complaint receipt are given as below:

Number of complaints received in 2005-06 and 2006-07 Period Scheme running No. of complaints From To Total Received
From To Total BO Scheme,2002 01.01.2006 30.06.2007 18 months BO Scheme,2006 60647 3370 Total 9723 Per Month 1080 01.04.2005 31.12.2005 9 months

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The fact that the Banking Ombudsmen could dispose of more than 98% of the complaints by mutual settlement between the complainant and the concerned banks to their satisfaction indicates that they took appropriate decisions taking into consideration all the relevant and extant legal and banking instructions and practice.

Mode of disposal of complaints (Other than complaints that could not be considered)
Sr. No. Year No. of complaints disposed of 1. 2. 3. 4. 5. 2003-04 2004-05 2005-06 2006-07 2007-08 3998 5440 14931 21747 29365 Disposal by Award No. 121 165 146 84 70 % 2.21 3.03 0.98 0.39 0.24 Disposal by Settlement No. 3877 5275 14785 21662 29295 % 97.78 96.97 99.02 99.61 99.76

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COST DETAILS OF RUNNING THE SCHEME
The costs of the Scheme include the revenue expenditure and capital expenditure incurred in running the Banking Ombudsman offices. The revenue expenditure includes the establishment items like salary and allowances of the staff attached to Banking Ombudsman offices and non-establishment items such as rent, taxes, insurance, law charges, postage and telegram charges, printing and stationery expenses, publicity expenses, depreciation and other miscellaneous items. The capital expenditure items include the furniture, electrical installations, computers/related equipments, telecommunication equipments and motor vehicle.

Cost details of Banking Ombudsman Offices

Period Total Cost (Rs. cr.) No. of Complaints dealt Cost per Complaint (Rs.) 2003-04 2004-05 2005-06 2005-06 2007-08 7.03 7.60 10.16 9.81 12.50 9,483 12,034 33,363 38,638 47,887 7,413 6,315 3,045 2,538 2,611

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BANKING OMBUDSMAN Is the New Banking Ombudsman Scheme 2006 differs from its previous schemes?

The vision behind the emergence of Banking Institution is to evolve into a strong, sound and globally competitive financial system, providing integrated services to customers from all

segments, leveraging on technology and human resources, adopting the best accounting and ethical practices and fulfilling corporate and social responsibilities towards all stakeholders. As a part of this vision, the RBI lodged various Ombudsman schemes till today which forms a part of our discussion. Yes, the new scheme 2006 differs from its previous schemes. The extent and scope of the scheme, 2006 is much wider than its earlier schemes of 1995and2002. Because the new scheme introduces for the first time;

Includes complaints relating to credit cards, deficiencies in providing the promised services by banks and its marketing agents, levying of service charges without prior notice to the customers and non-compliance of fair practice codes by the banks;

Facilitates the submission of complaints through online;

Establishes an appellate authority to facilitate appeals against the awards rendered by the Banking Ombudsmen instead of filing with the Review Authority for review of such awards. The extent and scope of the new Scheme is wider than the
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earlier Scheme of 2002.The new Scheme also provides for online submission of complaints. The new Scheme additionally provides for the institution of an 'appellate authority' for providing scope for appeal against an award passed by the Ombudsman both by the bank as well as the complainant.

In exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949 and in partial modification of its Notification dated December 26, 2005, Reserve Bank of India hereby amends the Banking Ombudsman Scheme 2006 to the extent specified in the Annex hereto. The Reserve Bank hereby directs that all commercial banks, regional rural banks and scheduled primary co-operative banks shall comply with the Banking Ombudsman Scheme, 2006 as amended hereby. The amendments in the Scheme shall come into force from January 1, 2006.

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FIELD STUDY

1. HOW CAN THE BANKING OMBUDSMAN SCHEME HELP TO CUSTOMER?

We may be able to resolve your complaint quickly and informally by discussing it with you and the bank. If the complaint is not resolved informally and the banking ombudsman finds that a bank has acted wrongly, she can require the bank to pay compensation - up to $200,000 for the direct loss or damage it has caused, and up to $ 6,000 for inconvenience (stress, embarrassment etc.)

2. WHEN WE CAN FILE A COMPLAINT?

We can file a complaint before the banking ombudsman if the reply is not received from the bank within a period of 1 month, after the bank concern has received his representation, or the bank rejects the complaint, or the complainant Is not satisfied with the reply given to him by the bank.

3. DO WE HAVE ANY LEGAL POWER?

Yes, it is a quasi judicial authority. It has power to summon both the parties bank and its customer, to facilitate resolution of complaint through meditation.

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4. HOW TO FILE A COMPLAINT?

One can file a complaint with us simply by writing on a plain paper; one can also file it online or by sending an email to the banking ombudsman. There is a form along with the details of the scheme in a website. However, it is not necessary to use this format.

5. WHAT DETAILS ARE REQUIRED IN THE APPLICATION?

The complaint should have the name and address of the complainant, the name and address of the branch or office of the bank against which the complaint is made, facts giving rise to the complaint supported by documents, if any, the nature and extent of the loss caused to the complaint, the relief sought from the banking ombudsman and a declaration about the compliance of conditions which are required to be compiled with by the complainant.

6. IS THERE ANY COST THAT IS TO BE INCURRED BY THE PERSON WHO IS FILING A COMPLAINT?

No. complaints.

We do not charge any fee for resolving customers

7. HOW LONG WILL THE INVESTIGATION TAKE?

It depends on the complexity of your complaint and how quickly we can get all the necessary information. More than 50% of complaints can be resolved within three months of our receiving them but more complex complaints can be quite time consuming.
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You should be prepared to allow time for thorough investigation to take place, very occasionally; it may take more than a year to complete an investigation.

8.

ARE

ALL

THE

COMPLAINTS

ARE

INVESTIGATED

PERSONALLY?

When we decide to investigate a complaint it is assigned to an investigator. The investigator will be a main point of contact with our office and will obtain all the necessary information from us and the banks to assist in resolving the complaint.

9. IS MY COMPLAINT TOO SMALL?

Every complaint is taken seriously. No complaint is too insignificant and no claim is too small.

10. HOW INDEPENDENT IS THE BANKING OMBUDSMAN IN MAKING DECISIONS?

The banking ombudsman is impartial and decides each complaint on of its own merits. The banking ombudsman and is of

independent government.

the

banks,

consumer

organizations,

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11. IS IT NECESSARY TO ACCEPT THE DECISIONS OF BANKING OMBUDSMAN?

No, we do not have to accept any decision the banking ombudsman makes. We are always free to go to court or the disputes tribunal or any other complaint resolution body, if we wish.

12. WHAT HAPPENS IF THE BANK DOES NOT ACCEPT RECOMMENDATION?

If we accept the banking ombudsmans final recommendation but the bank does not, we may ask the banking ombudsman to make an award. An award is binding on the bank and the bank will have to pay whatever compensation the banking ombudsmans award requires of it. Awards are rare as banks nearly always accept the final recommendation.

13. WHERE CAN WE LODGE A COMPLAINT FOR BANKING OMBUDSMAN?

One may lodge banking ombudsman complaint at her office of the banking ombudsman under whose jurisdiction, the bank branch complained against is situated.

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14. DO WE NEED A LAWYER?

No. The banking ombudsman scheme is a free and informal alternative to going to court. In most cases there is no need of any legal or other expert assistance. The banking ombudsman decides if she will uphold our complaint by looking at the facts not at the way we present our complaint. If we decide to employ a professional to present your case for us then certainly we have to pay their costs yourself. We should not expect to get these costs back, even if the Banking Ombudsman upholds our complaint.

15. IS THERE ANY TIME LIMIT FOR MAKING A COMPLAINT?

Sometimes. If the bank has sent us a letter giving us its final decision and telling us to come within two months of the date of the banks letter. If we have known about our complaint for more than twelve months before making any complaint to the banking ombudsman, the banking ombudsman may decide not to consider it.

16. IS THERE ANY NEED OF EVIDENCES OR PROOFS TO LODGE A COMPLAINT?

Yes. Banks must give us all the information we need to investigate our complaint. This includes account statements, loan documents and notes written by bank staff. However there may be difficulties if we do not have key documents that are not bank documents, such as correspondence with third parties.

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17. HOW THE BANKING OMBUDSMAN SCHEME FUNDED?

The costs of running the banking ombudsman scheme are met by a levy on the member banks. There is a contract between the board of the banking ombudsman scheme and each member bank, under which the bank has an obligation to pay the levy required. The banking ombudsman herself has nothing to do with these arrangements.

18. IF WE ARE NOT SATISFIED WITH THE DECISION OF BANKING OMBUDSMAN, THEN WHAT CAN WE DO?

If one is s not satisfied with the decision passed by the banking ombudsman, one can approach the appellate authority against the banking ombudsmans decision. Appellate authority is vested with a deputy governor of the RBI.

One can also explore any other recourse and/or remedies available to him/her as per the law. The bank also has the option to file an appeal before the appellate authority under the scheme.

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FINDING ANALYSIS & INTREPRETATION

The primary data is been collected through visiting a public bank named INDIAN BANK situated at Unr-4. MR. SURESH .U. SABLE (Branch manager) interacted with me very politely & efficiently.

They provided us information regarding the topic BANKING OMBUDSMAN. complaints of They the gave information and the about the various process

customers

redressal

implemented.

So, I achieved good response regarding my topic & they provided best of their knowledge.

From the findings, we can say that a consumer can file a complaint before the banking ombudsman if he has not received reply from the bank within 1 month or when the bank rejects the complaint or the reply of the bank is not satisfactory.

Banking Ombudsman is the legal authority & the decisions of it can be challenged in the court or disputes tribunal. The decisions of the banking ombudsman are impartial in nature & depend upon the merits of the complaint.

Banking ombudsman is an informal & free alternative to going to court. The professional lawyers are not to be appointed & if professionals are appointed then the cost of it is bear by the complainant & it is not redeemed.
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CONCLUSION
Though the Banking Ombudsman Scheme was introduced in the year 1995, with a view to do away with the banking customer complaints, the scheme was amended in subsequent years of 2002 and 2006. But the banks do not seem to have adopted the norms for their efficient functioning, that is the reason behind the increasing consumer cases against the banks, which are governed under the scheme. In the system of Banking Ombudsman, the results are delivered very soon, the procedures are fair together with cost, and proportionate to the nature of the issues involved. The system deals with cases at reasonable speed, is understandable to those who use it, is responsive to the needs of those who use it, and provides as much certainty as the nature of particular cases allows. This is true because over the past five years nearly 36000 complaints are being resolved by the Banking Ombudsman under this Banking Ombudsman Scheme. Though the Banking Ombudsman is eligible enough to deliver the bank customer complaints at the earliest yet the Consumer Redressal Forum/Commission is being taken resort of by most of the bank customers for their redressal of grievances with the bank. The reason is they are well popular among the common public which is lacking with the banking ombudsman and its working. Definitely the Scheme needs popularity in the society for its more appropriateness and effectiveness so that the aggrieved bank customer with the services of the bank prefers to knock the door of the banking ombudsman for redressal.

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RECENT CASES
Banking ombudsman for Northeast receives 708 complaints till June 2012
August 22, 2012 | Bikash Singh, ET Bureau Guwahati: The number of complaints against banking services is gradually increasing in Northeast India. Banking Ombudsman for Northeast India has received 708 numbers of complaints till June 2012. B. B. Sangma, Banking Ombudsman for Arunanchal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura on Wednesday said, "The number of complaints by the Northeastern office has increased from mere 37 in 1996-97 to 708. Sangma explained...

RBI revises time limit for speedy redressal of complaints

March 4, 2008 | PTI MUMBAI: Reserve Bank of India has revised the time limit for lodging complaints with banking ombudsman to ensure speedy redressal of grievances of customers. The apex bank said in a statement that if the complaints of customers are not addressed satisfactorily within 30 days of lodging complaints, then he would now be able to approach the office of the concerned banking ombudsman for redressal of his complaints and grievances.

File complaint after paying credit card dues: Banking Ombudsman

PTI Jul 3, 2012 NEW DELHI: Credit card users should pay their bills first and then lodge the complaint in case of a dispute with the card provider, said Banking Ombudsman (New Delhi) M Rajeshwar Rao. This will protect them from the risk of paying more in case the decision is in favour of the card provider, according to Rao.

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20% rise in banking complaints

TNN | Aug 28, 2012, 06.15AM IST JAIPUR: The office of Banking Ombudsman (OBO) -- Banking Lokpal, Rajasthan -- has registered a 20% rise in the complaints for 2011-12 than previous year. Most complaints came from Jaipur while most of it was against State Bank of Bikaner and Jaipur (SBJJ). However, Banking Lokpal which came into practice in 1995 for bringing about transparency is yet to be a hit among customers.

Banking Ombudsman is a system meant to safeguard interests of customers. Customers who feel that they are being cheated or have any issues with the bank's practices can avail this forum. But lack of public awareness is a major concern.

The SBJJ, with 1008 complaints, tops the list. It is followed by State Bank of India (SBI) which has 767 complaints. ICICI bank logs in with 402 complaints.

Karnataka banking ombudsman resolved 3,563 complaints in one year

PTI | Aug 23, 2012, 10.32PM IST BANGALORE: Karnataka's banking ombudsman received 3,647 complaints and resolved 3,563 of them between July, 2011 and June, 2012. "The complaints pertained to net banking frauds, delay in payment of pension, clearance of cheques and issue of credit and debit cards," Karnataka's Banking Ombudsman M Palaniswamy told reporters here today. Palanisamy said two banks were made to pay up for the net banking frauds committed against their account-holders.

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"These banks allowed fraudsters, who hacked into bank accounts online, to open bank accounts without verifying their antecedants," Palaniswamy said. He said the number of complaints regarding net banking has considerably come down now as all the banks have tighter fire walls and three levels of safety protocols. He said introduction of Electronic Fund transfer and Real Time Gross settlement software by RBI has helped transfer of funds within the country easier, cheaper and faster. Palaniswamy urged bank customers to send their complaints through email- bobangalore@rbi.org.in, if any bank does not redress their grievance within 30 days. There were 732 complaints received against banks for delaying issuance of credit and debit cards to account holders, Palaniswamy said.

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ANNEXURE
FORM OF COMPLAINT (TO BE LODGED) WITH THE BANKING OMBUDSMAN (TO BE FILLED UP BY THE COMPLAINANT) To: The Banking Ombudsman Place of BOs office.. Dear Sir, Sub: Complaint against .(Name of the banks branch) of (Name Bank) Details of the complaint are as under: 1. Name of the Complainant .. 2. Full Address of the Complainant Pin Code .. Phone No/ Fax No. . Email . 3. Complaint against (Name and full address of the branch/bank) . Pin Code . Phone No. / Fax No. . 4. Particulars of Bank or Credit card Account (If any) 5. (a) Date of representation already made by the complainant to the bank (Please enclose a copy of the representation) . of the

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(b) Whether any reminder was sent by the complainant? YES/NO (Please enclose a copy of the reminder) . 6. Subject matter of the complaint (Please refer to Clause 8 of the Scheme) 7. Details of the complaint: (If space is not sufficient, please enclose separate sheet) 8. Whether any reply (Within a period of one month after the bank concerned received the representation) has been received from the bank? Yes/ No (if yes, please enclose a copy of the reply ) 9. Nature of Relief sought from the Banking Ombudsman (Please enclose a copy of documentary proof, if any, in support of your claim) 10. Nature and extent of monetary loss, if any, claimed by the complainant by way of compensation (please refer to clauses 12 (5) & 12 (6) of the Scheme) Rs.. 11. List of documents enclosed: (Please enclose a copy of all the documents ) 12. Declaration: (i) I/ We, the complainant/s herein declare that: a) the information furnished herein above is true and correct; and b) I/We have not concealed or misrepresented any fact stated in the above columns and in the documents submitted here with.

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(ii) The complaint is filed before expiry of period of one year reckoned in accordance with the provisions of Clause 9(3)(a) and (b) of the Scheme. (iii) The subject matter of the present complaint has never been brought before the Office of the Banking Ombudsman by me/ us or by any of the parties concerned with the subject matter to the best of my/ our knowledge. (iv) The subject matter of the present complaint has not been decided by/pending with any forum/court/arbitrator. (v) I/We authorise the bank to disclose any such information/ documents furnished by us to the Banking Ombudsman and disclosure whereof in the opinion of the Banking Ombudsman is necessary and is required for redressal of our complaint. (vi) I/We have noted the contents of the Banking Ombudsman Scheme, 2006. Yours faithfully, (Signature of Complainant) NOMINATION (If the complainant wants to nominate his

representative to appear and make submissions on his behalf before the Banking Ombudsman or to the Office of the Banking Ombudsman, the following declaration should be submitted.) I/We the above named complainant/s hereby nominate Shri/Smt.. who is not an Advocate and whose address is

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as my/our REPRESENTATIVE in all proceedings of this complaint and confirm that any statement, acceptance or rejection made by him/her shall be binding on me/us. He/She has signed below in my presence.

ACCEPTED (Signature of Representative) (Signature of Complainant) Note: If submitted online, the complaint need not be signed.

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BOOKS & NEWSPAPER REFFERED

THE INDIAN BANKER JOURNAL THE OMBUDSMAN JOURNAL. ECONOMIC TIMES MINT SUNDAY TIMES

WEBILOGRAPHY WEBSITES REFFERED

WWW.RBI.ORG.IN WWW.WIKIPEDIA.ORG.BANK.COM WWW.BANKETINDIA.COM

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