RBI Ombudsman

Why is it in the news?
  • As per the recent RBI data, the banking ombudsman received 24.9% more customer complaints in FY18 over the previous year.
More in the news
    • The Scheme:
      (1) The banking ombudsman scheme (BO Scheme) was introduced in 1995 as a cost-free and expeditious grievance redressal mechanism for customers of banks.
      (2) The Banking Ombudsman Scheme is introduced under Section 35 A of the Banking Regulation Act, 1949 by RBI.
      (3) The Banking Ombudsman is a senior official appointed by the Reserve Bank of India to redress customer complaints against deficiency in certain banking services covered under the grounds of complaint specified under Clause 8 of the Banking Ombudsman Scheme 2006 (As amended upto July 1, 2017).
      • The scheme was later updated to include grievances relating to mobile/electronic banking and mis-selling as grounds of complaint.
      • The major grounds of complaints:
        (1) Non-observance of fair practices code (22.1%).
        (2) ATM and debit card issues (15.1%).
        (3) Credit card issues (7.7%).
        (4) Failure to meet commitments (6.8%).
        (5) Mobile and electronic banking (5.2%).
        • Of the total number of complaints received, nationalised banks and State Bank of India (SBI) taken together accounted for 63%.
        • There was an increase of 31% in complaints received against SBI during the year, one of the major reasons being the merger of associate banks with SBI.
        • The share of foreign banks stood at 2% while that of private sector banks was 26% of total complaints received.
      Source
      The Hindu.




      Posted by Jawwad Kazi on 26th Apr 2019
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