If you take your complaint to the banking ombudsman and are not happy with the final compensation settlement it decrees on your complaint, you can reject it. If you accept the settlement, the ombudsman will pass an order. Once you accept the order, you and the bank are bound by it.
When do you go to an ombudsman?
If you complain to your bank about any dispute and the bank rejects it or doesn’t respond within a month, or you are not satisfied with its reply, you can take your complaint to the banking ombudsman. You can approach the ombudsman within a year of receiving a reply from the bank. In case your bank doesn’t bother to reply to you at all, you have 13 months to approach the ombudsman from the date of filing the complaint.
What does the ombudsman do?
The ombudsman will give an opportunity to you as well as the bank to present the case. The ombudsman will look into the case and try and bring about a settlement by agreement between you and the bank.
If there is no settlement by agreement within a month, the ombudsman may fix an award.
The compensation amount varies from case to case. For credit card issues, the maximum awards can go up to Rs 1 lakh, depending on the case.
What happens if you reject ombudsman’s compensation?
If you are not happy with the compensation amount, you as well as the bank can approach the appellate authority. You will have to approach the authority within 30 days of the date of receipt of the award. You may get another 30 days, but that depends on the appellate authority. The authority can either dismiss or allow the appeal and set an award.
Things to keep in mind
Ombudsman can reject complaint: Don’t assume that the ombudsman will accept your compliant without a thought. The ombudsman can reject the complaint if it thinks there is no loss or damage or inconvenience caused to you.
Supporting documents a must: You must attach all relevant documents with the complaint you send to the ombudsman. For instance, if you are consistently getting your credit card bill after the due date and the bank is charging you a late payment fee, support your compliant with a copy of your credit card statement, the courier delivery receipt and other relevant documents.
Others: In case you have incurred a loss, mention the nature and extent of the loss in the application. You can also mention the kind of relief you are seeking. You must give a declaration that you will comply with the required conditions.
Find the address for the ombudsman in your area at the Reserve Bank of India’s website, www.rbi.org.in