The government of India often introduces new positions for better maintenance of different sectors. Banking ombudsman is such a position that handles the complaints of the customers. Through this article, we will explore their responsibilities, eligibility criteria, and much more.

What Is A Banking Ombudsman? 

A banking ombudsman is an experienced official responsible for dealing with the complaints of consumers against the bank's services/employees. This person is also known as RBI ombudsman.

Formation

The position of Banking or RBI Ombudsman started back in 1995 and, in 2006, it went through several revisions to widen the complaint types they address.

Roles And Responsibilities Of A Banking Ombudsman

Precisely, a banking ombudsman holds huge power and of course significant responsibilities including:

1. Handling the non-cooperative actions of banks –

In case, a bank refuses to accept small currency like coins, small denomination notes, etc., without specific reason, an ombudsman needs to check. Similarly, failed drafts, cheques, pay orders, payment delays, etc., are also the lookouts of an ombudsman. Also, any non-cooperative actions of the bankers during banking hours are subject to ombudsman's judgment. 

2.Mediating the issues –

An ombudsman has to work as a mediator when a bank charges any amount without informing a consumer. They also address the unfair practices of banks or misconduct of any bank employee.

3. Investigation

The ombudsman has to investigate the matter and on finding the fault on bank's side, can ask for compensation up to INR 20 lacs.

4.Supervising the law and orders –  

An ombudsman must ensure that the implemented laws are strictly followed so that the rights of every single citizen remain safe.

Eligibility Criteria: Who Can Be A Banking Ombudsman?  

Mostly, a general manager or chief general manager becomes a banking ombudsman. The eligibility criteria include expertise in the following areas:

1. Legal matters
2. Banking/financial services
3. Public administration

Overall, the person must hold a good reputation during the past years and present.

Who Appoints An Ombudsman?

The Reserve Bank of India (RBI) appoints the banking ombudsman.

Where Is An Ombudsman Appointed?

RBI appoints the banking ombudsman. Nationwide, there are total 22 ombudsman offices (mostly in the capital cities) and any of these, they get appointed.

Tenure

The tenure of a banking ombudsman is 3 years; however, this is extendable (not more than 2 years). The tenure extension is subject to age-limit – maximum 65.

Filing A Complaint With Banking Ombudsman – Complete Process

To file a complaint with banking ombudsman,

• Reach the bank first and if they do not respond to it within 30 days, dismiss it
• Go to https://cms.rbi.org.in and file a complaint [Alternatively, dial 14440 toll-free]
• Provide all details (your contact details, transaction/bank/employee details, etc.) and the documents in support of the complaint

To file a complaint in offline mode, download the complaint form from the banking ombudsman website and fill in all the details. Attach the supporting details and send them to the office within the bank's jurisdiction.

Tracking The Complaint And Resolution Process

An acknowledgment will be generated on filing the complaint – keep it safely with you. Within 30 days of filing the complaint, the ombudsman will start to look into the matter. If needed, they may reach out to you as well. You can track the status of your complaint on the same portal.

What Types Of Complaints A Banking Ombudsman Deals With?

In case you are facing any of the following issues, you can file a complaint with banking ombudsman and get assistance:

1. Non-acceptance of small currency (notes/coins) without any proper reason
2. Delay in payments
3. No service during banking hours
4. Not receiving the promised (documented/written) service
5. Non-adherence to RBI guidelines for mobile banking, net banking, or any other service
6. Issue with cards, ATM withdrawals/deposits where bank is not assisting
7. Account issues
8. Fees charged without any prior information
9. Misbehaviour of any banking staff
10. Misinterpreting and selling unnecessary policies

Note: Banking ombudsman covers issues with all Public sector banks, private sector banks, foreign banks, local area banks, RRBs, small finance banks, payment banks, and scheduled & non-scheduled cooperative banks – so, no matter which financial institution you are facing issue with, you can get their assistance.

Where To File A Complaint?

A person facing an issue and willing to file a complaint, needs to find a banking ombudsman office based on the bank's jurisdiction and lodge the complaint there.

Who Can File A Complaint And When?

Anyone facing any issue with the bank or bank employees can file a complaint with banking ombudsman.

When Can The Ombudsman Reject The Complaint?

During these situations, the complaint may get rejection from the ombudsman:

1. No contact to bank [You have to complain to the bank first, reach the ombudsman only if they don’t respond]
2. Expired time limits [Reach the ombudsman within 1 year of approaching the bank]

Also, the complaints that are already seeking legal help are rejected.

Charges Of Filing A Complaint

It is absolutely free to file a complaint with ombudsman.

End Words

So, banking ombudsman scheme is to safeguard the consumers from monetary loss as well as from harassment from bank employees. This ombudsman scheme is another great step from the Government of India and RBI for the grievance redressal, however, very few know about this. In case you have any more questions, read The Reserve Bank - Integrated Ombudsman Scheme, 2021. Similarly,PayG Payments Gateway ensures safeguards all the transactions with an updated fraud database and automated blocking system.