Banking Ombudsman Scheme

Banking Ombudsman [1] is a quasi judicial authority functioning under India’s Banking Ombudsman Scheme 2006, and the authority was created pursuant to the a decision by the Government of India to enable resolution of complaints of customers of banks relating to certain services rendered by the banks. The Banking Ombudsman Scheme was first introduced in India in 1995, and was revised in 2002. The current scheme became operative from 1 January 2006, and replaced and superseded the banking Ombudsman Scheme 2002. From 2002 until 2006, around 36,000 complaints have been dealt by the Banking Ombudsmen.
What is Banking Ombudsman (BO)?
He hears customers’ complaints against banks.
BO was first setup in UK.
In India, RBI started this scheme in 1995.
Appointment & Tenure
Earlier RBI used to appoint reputed persons from banking, finance, management, legal etc. sectors as Banking Ombudsmen (BO).
But now RBI has reserved this BO post for its own Chief General Managers and General Managers.
Tenure: 3 years at a time.
Reappointment: yes possible.
Jurisdiction
Banking Ombudsman (BO) Scheme applies to whole of India (including Jammu and Kashmir).
Banking Ombdusmen have jurisdiction over
1. All commercial banks (scheduled and non scheduled, public and private)
2. Regional rural banks
3. scheduled primary co-operative banks
4. NBFCs (BO’s Jurisdiction limited to “loan” part.)
BO is not a replacement of Consumer forum/courts. He merely supplements them.
BO deals with matters less than or equal to Rs.10 lakhs.
Here are some examples situation where BO can help you:
Regular banking
1. Demand draft, cheques, pay orders etc. not issued on time. (or not paid on time)
2. Credit card related complaints (e.g. bank putting hidden charges. Your credit card was stolen but bank did not disable it even after you called them.)
3. You asked the bank to close your account / credit card but they are not doing it.
4. Bank refuses to open your account without giving valid