Wednesday, 13 February 2019

OMBUDSMAN

OMBUDSMAN:
Scheme announced by RBI u/s 35 A of BR Act.
✓ Scheme effective from June 1995 and amended in June’02 & 01.01.2006.
✓ Covers scheduled commercial banks, RRBs and co-operative banks.
✓ Deals with: Deficiency in banking services, delayed collection of cheques, non-issue of drafts, interest rate disputes, failure to honour LC/guarantee commitments, delay in disposal of loan application
✓ It promotes settlement through conciliation
• Applicable all SCBs including RRB/Co-operative banks (Including J&K state)
• RBI appoint its own CGM/GM
• In case of loan related complaints only in case of non-observance of RBI directives, delay in sanction or disbursement, time schedules etc.
• If one month lapsed after lodging complaint with bank and no reply received or reply not satisfactory. Complaint can be made within one year of the above period. Cases pending in court or already decided by court/ ombudsman, not eligible.
Procedure :
➢ On receipt of complaint, ombudsman will refer the matter to bank to promote settlement by agreement. If not settled within 1 month, ombudsman shall announce award.
Award :
➢ Can direct bank for specific performance in addition to compensation up-to Rs.10 lac against indemnity. Binding on bank if customer gives acceptance within 30 days from receipt. Compliance by bank within 1 month of receipt of acceptance from customer.
Appeal :
➢ Against award or against ground of rejection of complaint, customer can file appeal within 30 days on receiving the award / rejection of complaint, to Dy. Governor RBI. Appeal by banks against award can be made within 30 days of date of receipt of customer acceptance, with permission of CMD or ED or CEO

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