RBI

Banking Ombudsman Scheme 2006 amended by RBI to cover insurance mutual fund/other third party investment products sold by banks

Banking Ombudsman Scheme 2006 amended by RBI to cover insurance mutual fund sale and other third party investment products sold by banks

Reserve Bank of India

Date : Jun 24, 2017

RBI amends Banking Ombudsman Scheme: Includes Complaints relating to Misselling and Mobile/ Electronic Banking

The Reserve Bank of India has widened the scope of its Banking Ombudsman Scheme 2006, to include, inter alia, deficiencies arising out of sale of insurance/ mutual fund/ other third party investment products by banks. Under the amended Scheme, a customer would also be able to lodge a complaint against the bank for its non-adherence to RBI instructions with regard to Mobile Banking/ Electronic Banking services in India.

The pecuniary jurisdiction of the Banking Ombudsman to pass an Award has been increased from existing rupees one million to rupees two million. Compensation not exceeding rupees hundred thousand can also be awarded by the Banking Ombudsman to the complainant for loss of time, expenses incurred as also, harassment and mental anguish suffered by the complainant.

The procedure for complaints settled by agreement under the Scheme has also been revised. Appeal has now been allowed for the complaints closed under Clause 13 (c) of the existing Scheme relating to rejection which was not available earlier.

The Reserve Bank has released a Notification dated June 16, 2017 amending the Banking Ombudsman Scheme 2006. The amended Scheme shall come into force from July 1, 2017. The amended Scheme is available on the Reserve Bank’s website at https://www.rbi.org.in/commonman/English/Scripts/AgainstBank.aspx

Ajit Prasad
Assistant Adviser

Press Release : 2016-2017/3473

 

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