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.
5. 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.
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.
1(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 irrespective of the pecuniary value of the deficiency in service complained 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 as per the provisions of the Scheme.
(3) The Banking Ombudsman shall exercise general powers of superintendence 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, a report, 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.
PROCEDURE FOR REDRESSAL OF GRIEVANCE
(1) Any person may file a complaint with the Banking Ombudsman having jurisdiction on any one of the following grounds alleging deficiency in banking including internet banking or other services.
(a). non-payment or inordinate delay in the payment or collection of cheques, drafts, bills etc.;
(b). non-acceptance, without sufficient cause, of small denomination notes tendered for any purpose, and for charging of commission in respect thereof;
(c). non-acceptance, without sufficient cause, of coins tendered and for charging of commission in respect thereof;
(d). non-payment or delay in payment of inward remittances;
(e). failure to issue or delay in issue of drafts, pay orders or bankers’ cheques
(f). non-adherence to prescribed working hours;
(g). 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;
(h). delays, non-credit of proceeds to parties’ accounts, non-payment of deposit or non-observance of the Reserve Bank directives, if any, applicable to rate of interest on deposits in any savings, current or other account maintained
with a bank;
(i). complaints from Non-Resident Indians having accounts in India in relation to
their remittances from abroad, deposits and other bank- related matters;
(j). refusal to open deposit accounts without any valid reason for refusal;
(k). levying of charges without adequate prior notice to the customer;
(l). non-adherence to the instructions of Reserve Bank on ATM /Debit Card and Prepaid Card operations in India by the bank or its subsidiaries on any of the following:
i. Account debited but cash not dispensed by ATMs
ii. Account debited more than once for one withdrawal in ATMs or
for POS transaction
iii. Less/Excess amount of cash dispensed by ATMs
iv. Debit in account without use of the card or details of the card
v. Use of stolen/cloned cards
(m). non-adherence by the bank or its subsidiaries to the instructions of Reserve Bank on credit card operations on any of the following:
i. Unsolicited calls for Add-on Cards, insurance for cards etc.
ii. Charging of Annual Fees on Cards issued free for life
iii. Wrong Billing/Wrong Debits
iv. Threatening calls/ inappropriate approach of recovery by
recovery agents including non-observance of Reserve Bank
guidelines on engagement of recovery agents
v. Wrong reporting of credit information to Credit Information
vi. Delay or failure to review and correct the credit status on
account of wrongly reported credit information to Credit
(n). non-adherence to the instructions of Reserve Bank with regard to Mobile Banking / Electronic Banking service in India by the bank on any of the following:
i. delay or failure to effect online payment / Fund Transfer,
ii. unauthorized electronic payment / Fund Transfer,
(o). non-disbursement or delay in disbursement of pension (to the extent the grievance can be attributed to the action on the part of the bank concerned, but not with regard to its employees);
(p). refusal to accept or delay in accepting payment towards taxes, as required by Reserve Bank/Government;
(q). refusal to issue or delay in issuing, or failure to service or delay in servicing
or redemption of Government securities;
(r). forced closure of deposit accounts without due notice or without sufficient reason;
(s). refusal to close or delay in closing the accounts;
(t). non-adherence to the fair practices code as adopted by the bank;
(u). non-adherence to the provisions of the Code of Bank’s Commitments to Customers issued by Banking Codes and Standards Board of India and as adopted by the bank ;
(v). non-observance of Reserve Bank guidelines on engagement of recovery agents by banks;
(w). non-adherence to Reserve Bank guidelines on para-banking activities like sale of insurance /mutual fund /other third party investment products by banks with regard to following:
i. improper, unsuitable sale of third party financial products
ii. non-transparency /lack of adequate transparency in sale
iii. non-disclosure of grievance redressal mechanism available
iv. delay or refusal to facilitate after sales service by banks
(x). any other matter relating to the violation of the directives issued by the
Reserve Bank in relation to banking or other services.
(2) A complaint on any one of the following grounds alleging deficiency in banking service in respect of loans and advances may be filed with the Banking Ombudsman having jurisdiction:
(a) non-observance of Reserve Bank Directives on interest rates;
(b) delays in sanction, disbursement or non-observance of prescribed time schedule for disposal of loan applications;
(c) non-acceptance of application for loans without furnishing valid reasons to the applicant; and
(d) non-adherence to the provisions of the fair practices code for lenders as adopted by the bank or Code of Bank’s Commitment to Customers, as the case may be;
(e) non-observance of Reserve Bank guidelines on engagement of recovery agents by banks; and
(f) non-observance of any other direction or instruction of the Reserve Bank as may be specified by the Reserve Bank for this purpose from time to time.
(3) The Banking Ombudsman may also deal with such other matter as may be specified by the Reserve Bank from time to time in this behalf.