Types of Complaints To Banking Ombudsman
Banking ombudsman scheme is a fast and low cost forum for quick resolution of customer grievances relating to deficiency in certain banking services.
What are the complaints that can be filed with banking Ombudsman?
Any person aggrieved by the deficiency in the service of a bank can register complaint with banking ombudsman. The complaint can be registered by the person himself or through an authrorised representative. Complaints can be registered through electronic modes also. The nature of complaints that comes under the Banking Ombudsman Scheme can be broadly classified under seven categories. The nature of complaints that can be filed with the Banking Ombudsman is covered by Clause 8 of the Banking Ombudsman Scheme, 2006.
1 Complaints related to deficiency in normal banking services
Complaints of the following nature relating to banking services can be classified under this group:
(a). Non-payment or inordinate delay in the payment or collection of cheques, drafts, bills etc.;
(b).Non-acceptance, without sufficient cause, of small denomination notes tendered for any purpose, and for charging of commission in respect thereof;
(c). Non-acceptance, without sufficient cause, of coins tendered and for charging of commission in respect thereof;
(d). Non-payment or delay in payment of inward remittances;
(e). Failure to issue or delay in issue of drafts, pay orders or bankers’ cheques
(f). Non-adherence to prescribed working hours;
(g). Failure to provide or delay in providing a banking facility (other than loans and advances) promised in writing by a bank or its direct selling agents;
(h). Delays, non-credit of proceeds to parties' accounts, non-payment of deposit or non-observance of the Reserve Bank directives, if any, applicable to rate of interest on deposits in any savings, current or other account maintained with a bank;
(i). Complaints from Non-Resident Indians having accounts in India in relation to their remittances from abroad, deposits and other bank- related matters;
(j). Refusal to open deposit accounts without any valid reason for refusal;
(k). Levying of charges without adequate prior notice to the customer;
(l). Non-disbursement or delay in disbursement of pension (to the extent the grievance can be attributed to the action on the part of the bank concerned, but not with regard to its employees);
(m).Refusal to accept or delay in accepting payment towards taxes, as required by Reserve Bank/Government;
(n). Refusal to issue or delay in issuing, or failure to service or delay in servicing or redemption of Government securities;
(o). Forced closure of deposit accounts without due notice or without sufficient reason;
(p). Refusal to close or delay in closing the accounts;
(q). Non-adherence to the fair practices code as adopted by the bank;
(r). Non-adherence to the provisions of the Code of Bank's Commitments to Customers issued by Banking Codes and Standards Board of India and as adopted by the bank ;
(s). Non-observance of Reserve Bank guidelines on engagement of recovery agents by banks;
2 Non-adherence to the RBI guidelines on ATM card, Debit Card and Prepaid Card operations
Customer complaints relating to deficiency in banking service in respect of ATM /Debit Card and Prepaid Card operations in India by a bank or its subsidiaries of the following nature can be filed with the banking Ombudsman:
i. Account debited but cash not dispensed by ATMs
ii. Account debited more than once for one withdrawal in ATMs or for POS transaction
iii. Less/Excess amount of cash dispensed by ATMs
iv. Debit in account without use of the card or details of the card
v. Use of stolen/cloned cards
vi. Any other complaints related to deficiency in ATM card /Debit card /Prepaid card related services
3. Complaints related to non-adherence by the bank to the RBI guidelines on Credit Card operations
Customer complaints relating to the deficiency in banking services in respect of credit card can be grouped under this category.
i. Unsolicited calls for Add-on Cards, insurance for cards etc.
ii. Charging of Annual Fees on Cards issued free for life
iii. Wrong Billing/Wrong Debits
iv. Threatening calls/ inappropriate approach of recovery by recovery agents including non-observance of Reserve Bank guidelines on engagement of recovery agents
v. Wrong reporting of credit information to Credit Information Bureau
vi. Delay or failure to review and correct the credit status on account of wrongly reported credit information to Credit Information Bureau.
vii. Any other complaints related to deficiency in credit card related services
4. Complaints related to non-adherence to the RBI guidelines on Mobile Banking / Electronic Banking service
Customer complaints relating to the deficiency in banking services in respect of Mobile banking and Electronic banking can be grouped under this category.
i. Delay or failure to effect online payment / Fund Transfer,
ii. Unauthorized electronic payment / Fund Transfer,
5. Complaints related to Non-adherence to RBI guidelines on para-banking activities like sale of insurance /mutual fund /other third party investment products
Customer complaints relating to the deficiency in banking services in respect of sale of insurance /mutual fund /other third party investment products come under this category.
i. Improper, unsuitable sale of third party financial products
ii. Non-transparency /lack of adequate transparency in sale
iii. Non-disclosure of grievance redressal mechanism available
iv. Delay or refusal to facilitate after sales service by banks
6. Complaints related to deficiency in banking service in respect of loans and advances
Customer complaints relating to the deficiency in banking services in respect of loans and advances come under this category:
(a) Non-observance of Reserve Bank Directives on interest rates;
(b) Delays in sanction, disbursement or non-observance of prescribed time schedule for disposal of loan applications;
(c) Non-acceptance of application for loans without furnishing valid reasons to the applicant; and
(d) Non-adherence to the provisions of the fair practices code for lenders as adopted by the bank or Code of Bank’s Commitment to Customers, as the case may be;
(e) Non-observance of Reserve Bank guidelines on engagement of recovery agents by banks; and
(f) Non-observance of any other direction or instruction of the Reserve Bank as may be specified by the Reserve Bank for this purpose from time to time.
7.Any other complaints related to violation of the directives issued by the RBI in relation to banking or other services
Customer complaints relating to the deficiency in banking services not mentioned in the other six categories comes under this category.
