The Banking Ombudsman Scheme provides a mechanism for resolution of complaints related to deficiencies in banking services. Key points: - The scheme is administered by the Reserve Bank of India and covers all scheduled commercial banks, regional rural banks, and scheduled primary cooperative banks. - Complaints can be filed by individuals or authorized representatives regarding issues that were not resolved by the bank within a month. The ombudsman may pass an award with compensation up to Rs. 20 lakh or reject the complaint. - Awards made by the ombudsman are binding if accepted by the complainant within 30 days. Banks must implement accepted awards within a month and confirm compliance. Appeals can be made to the Deputy Governor

1. BANKING OMBUDSMAN
SCHEME 2006
http://bankingdigests.com/

2. INTRODUCTION
❖RBI notified the Banking Ombudsman Scheme 2006
U/s 35A of Banking Regulation Act 1949 and scheme
came into force w.e.f. 01st Jan 2006 covers all
commercial banks, RRB’s & scheduled primary Co-
operative Banks.
❖Objective: Resolution of complaints relating to banking
services through conciliation & mediation between the
bank and the aggrieved parties or by passing an award.

3. BANKING OMBUDSMAN SCHEME
➢Eligibility of Ombudsman: CGM/GM of RBI tenor not exceeding
3 Years at a time. Cost borne by RBI.
➢Who can file a complaint: A person himself or his authorised
representative (other than an advocate) on paper or electronic
media (e-mail), or forwarded by RBI or Central Govt.
➢Jurisdiction: For Credit card, the jurisdiction is with reference
to ombudsman having jurisdiction over the billing address of the
card holder. For other accounts, it is as per location of the
branch.

4. CONDITIONS FOR COMPLAINT
➢Complain was made to the Bank and Bank had rejected or no
reply was received within a month or complainant is not satisfied
with the reply given by the bank.
➢Period of more than one year has not lapsed after receipt of
bank reply.
➢Complaint is not for issues already settled by ombudsman or for
which proceeding before court or any other forum is pending or
a decree or order has been passed.
➢The complaint is within limitation period under Indian limitation
Act 1963.

5. REJECTION OF COMPLAINT BY
OMBUDSMAN
❖If it Frivolous, malafide or without sufficient
cause or there is no loss or damage or
inconvenience caused to the complainant or is
beyond the pecuniary jurisdiction of ombudsman.
❖Can appeal to appellate authority within 30 days
of receipt of rejection to Dy. Governor RBI.

6. AWARD BY OMBUDSMAN
❖Where a complaint could not be settled by agreement within a period
of one month from the date of receipt of the complain, the
ombudsman may pass an award or reject on the basis of evidence
principles of banking law and Practice, directions and guidelines
issued by RBI.
❖Awards shall specify the amount to be paid by bank as compensation
not more than actual loss suffered or Rs. 20 lac (As amended up to
July 1, 2017, earlier it was Rs.10 lac), whichever is lower.
❖The Banking Ombudsman may award compensation not exceeding Rs.
1 lakh to the complainant for mental agony and harassment.

7. AWARD BY OMBUDSMAN
❖Awards shall be binding on the bank if the complainant
sends acceptance in full & final settlement within 30 days
from the date of receipt of the award.
❖Implementation-Customer has to send acceptance of the
award within 30 days from the date of receipt of the award.
❖Bank has to implement the award within one month from
the date of receipt of the acceptance from the complainant
and intimate compliance to the banking ombudsman.

8. APPEAL AGAINST AWARD
➢Customer can file an appeal to appellate authority (Dy. Governor
RBI ) within 30 days of date of receipt of award (could be extended
by 30days by appellate authority).
➢Appeal by Banks should be filed with sanction of the CMD /ED. For
bank 30 days period for filing appeal begins from date of receipt of
customer’s acceptance.
➢The appellate authority may dismiss /allow the appeal or set aside
the award or refer the matter to ombudsman for fresh disposal or
modify the award or pass any order as it may deem fit.

9. NODAL OFFICER
❖Nodal Officer- The bank shall
appoint nodal officer at their
RO/ZO/HO & inform the
ombudsman who shall represent
the bank/ furnish information to
the ombudsman.
❖Ground of Complaint-All Services
rendered by the bank.

10. For more details, you may visit the website
https://rbidocs.rbi.org.in/rdocs/Content/PDFs/BOS2006_2302017.pdf