What is the Banking Ombudsman Scheme, 2006?
The Banking Ombudsman Scheme, 2006 (BOS) is a statutory scheme established by the Reserve Bank of India (RBI) to provide a mechanism for resolving customer complaints against banks. The BOS came into force on July 1, 2006.
Who can file a complaint with the Banking Ombudsman?
Any person who is a customer of a bank can file a complaint with the Banking Ombudsman. The customer must have a grievance against the bank’s non-compliance with banking regulations, deficiency in service, or unfair or discriminatory treatment.
What kind of complaints can be filed with the Banking Ombudsman?
The BOS covers a wide range of complaints against banks, including:
- Refusal to open an account
- Delay in crediting money
- Wrongful debit of money
- Non-payment of interest
- Overcharging of fees
- Mishandling of customer’s documents
- Unfair or discriminatory treatment
How to file a complaint with the Banking Ombudsman?
A complaint can be filed with the Banking Ombudsman in writing or electronically. The complaint must be accompanied by a fee of Rs. 100.
How does the Banking Ombudsman investigate complaints?
The Banking Ombudsman will investigate the complaint and try to resolve it through mediation. If mediation is unsuccessful, the Banking Ombudsman will issue an order directing the bank to take corrective action.
What is the time limit for filing a complaint with the Banking Ombudsman?
A complaint can be filed with the Banking Ombudsman within one year from the date on which the cause of complaint arises.
What are the powers of the Banking Ombudsman?
The Banking Ombudsman has the power to:
- Call for information from the bank
- Summon witnesses
- Inspect documents
- Issue directions to the bank
- Award compensation to the customer
What are the penalties for non-compliance with the Banking Ombudsman Scheme?
A bank that fails to comply with the directions of the Banking Ombudsman can be fined up to Rs. 1 lakh.
Multiple Choice Questions (MCQs) on the Banking Ombudsman Scheme, 2006
- Which of the following is not a requirement for filing a complaint with the Banking Ombudsman?
- The complaint must be in writing.
- The complaint must be accompanied by a fee of Rs. 100.
- The complaint must be filed within one year from the date on which the cause of complaint arises.
- The complaint must be signed by the customer.
- The complaint must be addressed to the Banking Ombudsman.
The answer is (c). The complaint does not need to be signed by the customer.
- The Banking Ombudsman can issue directions to the bank to:
- Pay compensation to the customer.
- Refund the customer’s money.
- Cancel the customer’s account.
- All of the above.
The answer is (d). The Banking Ombudsman can issue directions to the bank to take any of these actions.
- A bank that fails to comply with the directions of the Banking Ombudsman can be fined up to:
- Rs. 10,000.
- Rs. 50,000.
- Rs. 1 lakh.
- Rs. 2 lakh.
The answer is (c). A bank that fails to comply with the directions of the Banking Ombudsman can be fined up to Rs. 1 lakh.