JAIIB FREE NOTES OF PPB 2024 | BANKING OMBUDSMAN SCHEME
In this article, we will discuss the Banking Ombudsman Scheme (which falls under the syllabus of JAIIB 2024 & which has been taken up from the JAIIB PPB Study Material for 2024. These are free notes which you can take advantage of. Take a read of the underwritten text to know what this scheme is all about.
RBI introduced Banking Ombudsman Scheme under Section 35A of the Banking Regulation Act 1949. It came into effect in 1995. At present, the Banking Ombudsman Scheme 2006 has been amended up to 1st July 2017.
The Banking Ombudsman Scheme is a kind of forum for banks’ customers that has been set up to provide resolution for the complaints related to services that are being provided by the banks.
BANKING OMBUDSMAN SCHEME
An officer, in the rank of chief general manager or general manager, gets appointed by the Reserve Bank of India as a banking ombudsman. He or she is the one who is responsible to redress the customer complaints against any deficiency that they feel in certain banking services under the grounds that have been specified under clause 8 of the Banking Ombudsman Scheme 2006. His/her appointment term should not exceed 3 years at once.
LOCATION OF BANKING OMBUDSMAN OFFICER
So far, 20 Banking Ombudsman have been appointed whose offices are mainly located in the state capitals.
BANKS COVERED UNDER SCHEME
The banks covered under the banking ombudsman scheme are:
- Scheduled Commercial Banks,
- Regional Rural Banks (RRBs); &
- Scheduled Primary Co-operative Banks
COMPLAINTS COVERED UNDER THE BANKING OMBUDSMAN SCHEME
The complaints that a banking ombudsman can receive and consider should relate to the deficiencies in banking services which are mentioned below:
- Cheques, drafts, and bills are not paid or there is an inordinate delay in the payment or collection;
- When banks do not accept small Denomination notes without any sufficient cause or charge any commission for their acceptance;
- When banks do not accept coins without any sufficient cause or charge any commission for their acceptance;
- Inward remittances are not paid or there is a delay in payment;
- Drafts, pay orders, or banker’s cheques are either not issued or there is a delay in their issue;
- Bank does not adhere to prescribed working hours;
- Bank fails to provide or there is a delay in providing the banking facilities which has been promised by the bank in writing;
- There is a delay in credit of proceeds to the party’s account or the proceeds are not being credited to the party’s account or the directives (interest rates on deposits saving, current or other accounts) of Reserve Bank are not being observed;
- Complaints in regard to remittances from abroad, deposits, or other bank-related matters which are faced by Non-Resident Indians;
- Bank refuses to open any deposit account without providing any valid reason;
- Charges are being levied without any prior notice;
- Instructions on ATM/Debit Card or Prepaid Card are not adhered to by the Indian banks or their subsidiaries;
- Instructions issued by the Reserve Bank of India in relation to credit card operations are not adhered to by the banks or their subsidiaries;
- Instructions issued by the Reserve Bank of India in relation to Mobile Banking or electronic banking are not adhered to by the banks or their subsidiaries;
- There is there a delay in the disbursement of the pension or the pension is not disbursed;
- Bank refuses to accept or delay the acceptance of any payment towards taxes that are required by the Reserve Bank of India or the Indian government;
- Bank refuses to issue or delays the issuing or fails to provide service or delays the servicing of the redemption of government securities;
- Deposit accounts are forcefully closed without any notice or without giving any sufficient reason for such closure;
- Bank refuses to close any account or delays it;
- The bank is not adhering to the code of Bank’s commitment to customers which have been issued by the Banking Codes and Standards Board of India;
- Bank do not observe Reserve Bank’s guidelines on the engagement of recovery agents;
- Banks do not adhere to the guidelines of the Reserve Bank of India on para-banking activities;
- There is any deficiency in the service in respect of loans and advances;
- Bank delays the sanction disbursement or does not observe the prescribed schedule of time which is applicable for the disposal of applications of the loan;
- Bank refuses to accept loan applications without giving any valid reason;
- Bank does not adhere to the fair practices code which is applicable for the lenders;
- Bank does not observe the directions or instructions of the Reserve Bank that may be specified from time to time;
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WHEN CAN YOU FILE A COMPLAINT
- No reply is received for the complaint that has been filed before the banking ombudsman within one month after the Bank receives the complaint.
- Bank rejects the complaint.
- The customer is not satisfied with the bank’s reply.
PROCEDURE OF FILING COMPLAINT
A complaint can be filed with the banking ombudsman simply by:
- writing on paper;
- file online complaint;
- send the complaint through email.
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COST OF FILING A COMPLAINT WITH BANKING OMBUDSMAN
No fees have been prescribed for filing complaints with the banking ombudsman to resolve the customer complaints.
So, this is how you can file a complaint with the banking ombudsman on the grounds that are mentioned above either inviting or you can even file it online or send the complaint through an email to the banking ombudsman.
This is one of the effective solutions that is brought forward by the Reserve Bank of India to resolve the banking customers’ complaints towards their banks.
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