Bank ombudsman scheme to be strengthened: RBI
The Reserve Bank of India to set up an internal ombudsman as the apex authority for redressal of customer complaints in Indian banks
New Delhi: In a customer friendly move, the Reserve Bank of India on Wednesday announced steps to further strengthen the internal ombudsman mechanism in Indian banks as it looks to quickly address customer complaints.
The central bank will set up an internal ombudsman (IO) as the apex authority for redressal of customer complaints. The internal ombudsman will be made more independent and the monitoring system over functioning of the IO mechanism will be made stronger, RBI said, adding that the aim was to minimize the need for customers to approach other for a redressal of their complaints.
It has been decided to extend the scheme for all scheduled commercial banks excluding RRBs with 10 or more banking outlets. Earlier, it was confined to a few banks, said M.K. Jain, deputy governor, RBI in a post policy press conference.
The RBI will issue the revised instructions by end of September.
“Keeping in view the rising customer base and the fast-paced growth of digital transactions, banks will have the option of appointing more than one internal ombudsman based on the assessment of their volumes and nature of complaints,” Jain said. “It will enhance the independence of IOs and reinforce the oversight on the implementation of the IO scheme,” he added.
Editor's Picks »
- Govt wants RBI to set up committees to oversee different functions
- Opinion | Experiments with a versatile pseudograin
- Tata Investment board approves ₹450 crore share buy-back
- Kotak Mahindra Bank surpasses Maruti Suzuki in market cap to enter top 10 club
- Got two WhatsApp numbers? Here’s how to use both of them on the same phone
- Future Retail’s Q2 result shows improvement in same-store sales
- Private insurance firms grow at the expense of LIC stuck with a sick bank
- Page Industries’s lofty valuations get a reality check in Q2
- Q2 results: Grasim’s Vodafone Idea stake is proving costly
- How Vodafone Idea’s $3.5 bn fundraising will impact telecom in India