Banking Ombudsman Scheme and Ombudsman Scheme for Digital Transactions: Do you know about the Banking Ombudsman Scheme of the RBI and the recently introduced Ombudsman Scheme for Digital Transactions. If you know then just go through the post for a quick revision. If you don’t then read this article thoroughly. We have covered all the important aspects of the two schemes. It would be beneficial for Banking Exams like IBPS, SBI, RBI, RRB and also for Insurance exams.
Banking Ombudsman Scheme, 2006
Banking Ombudsman Scheme Introduction: The Banking Ombudsman Scheme of the Reserve Bank of India provides the Customers of Commercial Bank a forum to lodge complain relating to certain services provided by bank.
Section of Banking Ombudsman Scheme : The Banking Ombudsman Scheme is introduced under Section 35 A of the Banking Regulation Act, 1949 by RBI with effect from 1995.
Current Banking Ombudsman Scheme in Force: The Banking Ombudsman Scheme 2006
Banks covered: under the Banking Ombudsman Scheme, 2006: All Scheduled Commercial Banks, Regional Rural Banks and Scheduled Primary Co-operative Banks are covered under the Scheme.
Types of complaints dealt by Banking Ombudsman:
When can you file a complaint in Banking Ombudsman:
You can file a complaint with the Banking Ombudsman only after
- You have filed your complaint with the bank concerned and 1 month has elapsed after filing the complaint with the bank and you have either not received a reply from the bank, or
- the bank rejects the complaint, or
- if the complainant is not satisfied with the reply given by the bank.
Please note you cannot directly lodge a complaint with Banking Ombudsman without first filing a complaint with your bank.
- So the minimum time is 1 month after filing the complaint with your ban and the maximum time is 1 year counted from the date of receiving the reply from your bank and in case the bank has not replied then 1 year and 1 month from the date of filing the complaint.
Fees for filing complaint with Banking Ombudsman: No fees is charged.
Compensation under the Banking Ombudsman Scheme: Maximum Rs 20 lakh or the amount of loss suffered by the complainant arising directly out of the act or omission of the bank, whichever is lower.
Compensation for Mental Agony: Maximum Rs 1 lakh (The Banking Ombudsman may award compensation not exceeding ₹ 1 lakh to the complainant for mental agony and harassment faced by him from his bank.
Number of Banking Ombudsman/Offices: Presently there are 22 Banking Ombudsman Offices in India
Appellate Authority: Deputy Governor
Extra: If you have faced some issues with your bank and want to lodge a complaint with either your bank or with the banking ombudsman you can do so via this link. Click Here
Summary (Quick Revision):
- The Banking Ombudsman Scheme is introduced under Section 35 A of the Banking Regulation Act, 1949.
- Introduced with The Banking Ombudsman Scheme 2006.
- All Scheduled Commercial Banks, Regional Rural Banks and Scheduled Primary Co-operative Banks are covered under the Scheme.
- You can file a complaint with the Banking Ombudsman only after you have filed your complaint with the bank concerned and 1 month has elapsed.
- Compensation under the Banking Ombudsman Scheme: Maximum Rs 20 lakh
- Compensation for Mental Agony: Maximum Rs 1 lakh
- Number of Banking Ombudsman/Offices: 21
- Appellate Authority: Deputy Governor
Ombudsman Scheme for Digital Transactions
Please Note: Both the schemes are very similar. If you learn one the another will be prepared automatically.
Introduction: The Ombudsman Scheme for Digital Transactions, 2019 has been introduced by the Reserve Bank of India w.e.f January 31, 2019 to deals with complaints regarding digital transactions undertaken by customers.
Section and Act: The Scheme is being introduced under Section 18 Payment and Settlement Systems Act, 2007, with effect from January 31, 2019.
Name of Scheme: Ombudsman Scheme for Digital Transactions, 2019
Complaints to be handled by Ombudsman for Digital Transactions
Any person may file a complaint free of cost with the Ombudsman for Digital Transactions having any one of the following grounds alleging deficiency in service:
- Prepaid Payment Instruments
- Mobile / Electronic Fund Transfers
- Relating to Unified Payments Interface (UPI) / Bharat Bill Payment System (BBPS) / Bharat QR Code / UPI QR Code
- Non-reversal / failure to reverse within reasonable time, funds wrongly transferred to the beneficiary account due to lapse at the end of System Participant (relating to digital payment)
- Any other matter relating to the violation of the directives including on fees / charges,4 if any, issued by the Reserve Bank in relation to digital transactions.
When can you file a complaint with Ombudsman for Digital Transactions:
You can file a complaint with the Ombudsman for Digital Transactions only after:
- You have filed your complaint with the bank concerned and 1 month has elapsed after filing the complaint with the bank and you have either not received a reply from the bank, or
- the bank rejects the complaint, or
- if the complainant is not satisfied with the reply given by the bank.
- Please note you cannot directly lodge a complaint with Ombudsman for Digital Transactions without first filing a complaint with your bank.
- So the minimum time is 1 month after filing the complaint with your bank and the maximum time is 1 year counted from the date of receiving the reply from your bank and in case the bank has not replied then 1 year and 1 month from the date of filing the complaint.
- The complaint should not fall under the disputes covered under Section 24 of the Payment and Settlement Systems Act, 2007
Fees: Nil
Maximum Compensation: Maximum Rs 20 lakh or the amount arising directly out of the act or omission or commission of the System Participant whichever is less.
Compensation for mental agony: Maximum Rs 1 lakh
Number of Ombudsman for Digital Transactions: 22
Appellate Authority: Deputy Governor
Note: One can file appeal against the Award or the decision of the Ombudsman rejecting the complaint, within 30 days of the date of receipt of communication of Award or rejection of the complaint. (Applicable to both the schemes.)
Summary
- The Ombudsman Scheme for Digital Transactions, 2019 has been introduced by the Reserve Bank of India w.e.f January 31, 2019.
- The Scheme is being introduced under Section 18 Payment and Settlement Systems Act, 2007, with effect from January 31, 2019.
- You can file a complaint with the Ombudsman for Digital Transactions only after you have filed your complaint with the bank concerned and 1 month has elapsed.
- Compensation under the Ombudsman Scheme for Digital Transactions: Maximum Rs 20 lakh
- Compensation for mental agony: Maximum Rs 1 lakh
- Number of Ombudsman for Digital Transations: 21
- Appellate Authority: Deputy Governor