Date:27/12/2005 URL: http://www.thehindubusinessline.com/2005/12/27/stories/2005122702800600.htm

Back RBI to man, fund Ombudsman scheme

Our Bureau

The scheme will be applicable to all commercial, regional rural, and scheduled co-operative banks.

Mumbai , Dec 26

THE Reserve Bank of India will appoint its officers in the rank of Chief General Manager or General Manager as banking ombudsmen from January 2006. The central bank announced this in the revised Banking Ombudsman Scheme, released today.

The revised scheme would be fully staffed and funded by the RBI instead of banks. The apex bank would also specify the location for the offices of the ombudsmen.

The scheme will be applicable to all commercial banks, regional rural banks, and scheduled co-operative banks, a release said.

The scope of the ombudsman has been expanded to include complaints related to credit cards and in instances where services promised by banks' sales agents are not provided.

Other complaints for which customers can now approach banking ombudsmen include levying of service charges without prior notice and non-adherence of fair practices code by banks.

These include non-payment or delay in payments or collection of cheques towards bills or remittances by banks, as also refusal to accept small denomination notes and coins or charging commission for acceptance of the same.

Complainants will be able to file their complaints in any form, include online. Customers will also be able to appeal to the RBI against the decision given by the banking ombudsmen, the release said.

The RBI is also in the advanced stage of setting up an independent Banking Code and Standards Board of India to ensure that comprehensive code of conduct for fair treatment to customers are formulated by banks and adhered to.