Skip to main content

Banking Ombudsman

A customer has few options when in a dispute with a financial institution.


At the end, most of the time, it is the customer who suffers.


Take an example of the most common dispute with credit card holders. Sometimes, the issuer levies a hefty fine for late payments even if the customer had paid on time. When the matter is not settled through correspondence, the customer refuses to pay. Banks report such customers as delinquent to the credit information bureau. This makes it difficult for them to get a loan.
However, if the bank does not respond to your communication satisfactorily, one can approach the Banking Ombudsman. This is a quasi-judicial authority that functions under Indias Banking Ombudsman Scheme, 2006. It covers all scheduled banks, regional, rural and scheduled primary cooperative banks. When set up in 1995, it covered complaints regarding non-payment, delayed payment of cheques and drafts, banks not open during working hours and other such problems. With the revision in 2006, it included services like transaction-related complaints at ATMs, debit and credit cards payment issues, deduction of service charges by banks without prior intimation, unfair practices and non-compliance by direct sales agents.


As a customer, you can also register a complaint on grounds of deficiency in service with respect to loans and advances. Complaints like nonobservance of Reserve Bank of Indias (RBI) directives on interest rates, delays in sanction, disbursement or non-observance of the prescribed schedule for disposal of loan applications, non-acceptance of applications without giving reasons to the applicant and so on.


The Ombudsman is a senior official RBI has appointed to redress customer complaints against deficiencies in services on the part of banks. There are around 15 such Ombudsmen through out the country, with offices located mostly in state capitals. This authority steps in when banks fail to resolve customers issues. Before approaching the Ombudsman, a person needs to register a complaint in writing with the bank (and get a written acknowledgement).


You can complain to the Ombudsman only if the bank rejects the complaint or one is not satisfied with the bank’s response got or if there is no response for a month.


The process to make a complaint is simple. The affected party can register his/her complaint online by logging on to www.bankingombudsman.rbi. gov.in and fill the form. The form can either be e-mailed or dropped at the regional office.


If the Ombudsmans judgement is not satisfactory, the person can approach RBIs appellate authority, which hears such cases. A Deputy Governor of the RBI is vested with this appellate jurisdiction. The Consumer Court is the last resort.

Popular posts from this blog

Mutual Fund Review: Religare Tax Plan

Tax Plan is one of the better performing schemes from Religare Asset Management. Existing investors can redeem their investment after three years. But given the scheme's performance, they can continue to stay invested   Given the mandated lock-in period of three years, tax saving schemes give the fund manager the leeway to invest in ideas that may take time to nurture. Religare Tax Plan's investment ideas revolve around 'High Growth', which the fund manager has aimed to achieve by digging out promising stories/businesses in the mid-cap segment. Within the space, consumer staples has been the centre of attention for the last couple of years and can be seen as one of the key reasons for the scheme's outperformance as compared to the broader market. It has, however, tweaked its focus and reduced exposure in midcaps as they were commanding a high premium. The strategy seems to have worked as it returned a 22% gain last year. Religare Tax Plan has outperformed BSE 100...

Stocks with a high dividend yield

Buy Gold Mutual Funds Invest Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Call 0 94 8300 8300 (India) Stocks with a high-dividend yield can provide investors additional cash flow. More importantly, it is tax-free   With April 2011 just over, the 'earnings season' is well and truly here. This is the time most companies pay out a portion of their profits as dividends to shareholders. Since dividends are tax-free, they are an attractive income source with a select class of investors, who depend on these for additional cash flow. SIGNIFICANCE A company doing well and generating profits will usually be in a position to declare dividends regularly. Hence, a key parameter one should look at whilst investing in a stock is whether the company has a good dividend record. Typically, dividend yield stocks are large-caps and generally not capital-intensive. This is suggestive of the fact that the downside risk on...

Good time to invest in Infrastructure Funds

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Good time to invest in infrastructure The Sensex has gained almost 10 per cent from May 15 till date, while the CNX Infrastructure Index has gained almost 17 per cent in the period. The price to earnings ( P/ E) ratio of the BSE Sensex is 18.96; for the CNX Infrastructure Index, it is 24.57. The estimated P/ E for next year is 14.04 for the Sensex. Of the 24 companies that make up the CNX Infrastructure Index, six have a P/ E higher than 20. Does this mean infrastructure is fairly valued? Or, has it run up quite a bit? According to experts, barring stray companies, the infra sector is fairly valued and it is a good time to invest. Even if some companies are facing debt restructuring problems, once interest rates come down and regulatory norms become flexible, they will start giving good re...

UTI Equity Fund Invest Online

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)   UTI Equity Fund   Invest Online UTI Equity is a large cap-oriented fund with assets under management worth Rs. 2,269 crore (as on June 30, 2013). The fund was originally launched in May 1992 as UTI Mastergain and is benchmarked against S&P BSE 100. A couple of years back the name of the fund was changed to UTI Equity Fund and many of the smaller funds of UTI were merged into this fund. Performance The fund has outperformed its benchmark as well as the equity diversified category average in the last one-, three- and five-year periods. It has repeated the same in 2013 (as on May 31). Since its inception the fund has delivered an impressive 26 per cent compounded annual growth rate which is superior to its benchmark performance in the same period. Y...

Take Calculated Risk with Investments

Invest MF SIPs Online       THOUGH THERE is irrefutable empirical evidence that equities can give high returns in the long term, small investors continue to rely heavily on fixed income investments. Equities account for a very small proportion of the total household savings. Surprisingly, even young investors who are in a position to invest in stocks, opt for the safety of bank deposits and small savings schemes . This aversion for equities could prove harmful in the long term. If you spend `40,000 a month on household expenses today, even 6% inflation will push that up to `72,000 a month by 2026. By 2031, the requirement will surge to `96,000 and by 2036, it would be `1.28 lakh a month. This is why even risk averse investors should consider allocating at least 10-15% of their portfolios to equities. Your money needs to grow at a faster clip than the inflation rate to sustain your lifestyle for several years. This can't be done by parking the entire retirement savings in low yie...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now