Nation
NPAs, Politics and Appointments

Powerful businessmen can use politicians to loot the banking system. No rules for them

Premium Content
Monthly Digital Access

Subscribe

Already A Subscriber?
Login
Yearly Digital+Print Access

Subscribe

Moneylife Magazine Subscriber or MSSN member?
Login

Yearly Subscriber Login

Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation
Officials are cocking a snook at UPA II

As officials in Delhi sense that the Congress government will not return, they are taking...

Premium Content
Monthly Digital Access

Subscribe

Already A Subscriber?
Login
Yearly Digital+Print Access

Subscribe

Moneylife Magazine Subscriber or MSSN member?
Login

Yearly Subscriber Login

Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation
Banking Ombudsman is not working

Is the Banking Ombudsman a broken system of grievance redress?

The latest report of the banking ombudsman’s office seems to confirm what many of us have suspected for over a year—that banking ombudsmen are closing cases and rejecting complaints every time there is even a whiff of another regulator involved. Consequently, bank customers, who have been hard-sold third-party products by wealth managers and relationship managers of banks, by exploiting a fiduciary relationship, are left high and dry.

Of the 75,183 complaints received in 2012-13, only half were found maintainable. Even of these, 49% were rejected for various reasons such as the amount involved or not having followed the process of approaching the bank first. Significantly, in just 1% of the cases—312 to be precise—was an order passed. There is something really wrong with this number at a time when consumer organisations like Moneylife Foundation have argued for exemplary damages as the fastest way to make banks more customer-focused.

Interestingly, a quarter of the complaints related to credit and debit card issues, which clearly remain a stress point for consumers and that mischief, like issue of unsolicited cards, skimming of cards, wrong debits, charging fees on free cards and using credit card to deduct mis-sold insurance, continues unabated. A hefty 26% were about the bank’s failure to adhere to its fair banking practices code. The fact that this becomes a matter of complaint to the banking ombudsman suggests that the statutory service committees of banks are probably not doing their job and are unconcerned about the BCSBI code, knowing that there is no consequence to ignoring it. The Reserve Bank attributes it to lack of awareness among bank staff about the fair practices codes. With over 72% of complaints coming from urban areas, it is clear that lack of awareness about redress mechanisms is also a huge problem.

User

COMMENTS

Dayananda Kamath k

3 years ago

long back i have written to rbi that they are the sponsors of all financial scams in india by their deriliction in duty, with examples. some times they accept any vague reply as satisfactory to them then what odinaery man can do. even rti quiry will be bounced back.

Bhaskar

3 years ago

The quality of service in public and private sector banks are pathetic. The fess levied by banks for various services "non rendered" are arbitrary and high. Viewed against this background and the prospect that in the future years we are going to be serviced by ill trained staff this model of customer redressal is not going to work. Consumer rights organisation/individuals should be coopted by individual bank managements for redressal. In fact these bodies should be represented at management
levels. Relying of RBI my experience says is a waste of time and money. Activists should fight for these representations in the board

Simple Indian

3 years ago

With even the Deputy Governor of RBI I/c of Customer Services turning a blind eye to customers' grievances, we can hardly expected the Banking Ombudsman to show any enthusiasm in addressing or even facilitating resolution of genuine complaints against erring Banks / Branches by aggrieved customers.

REPLY

Vikas V Deodhar

In Reply to Simple Indian 3 years ago

Dear All victims of Non-functioning of Ombudsman,

I have a long experience of Complaints to Ombudsman about unlawful charges by Banks, particularly foreign Banks like HSBC, Standard Chartered. The complaints sent to Ombudsman get abruptly closed on the basis of very unacceptable reply from the Banks and without getting to the proof of the complaint.
I am anxious to know what further steps can be taken. Can I go to Consumer Court ? Can I make the Bank and also the Ombudsman itself for dereliction of duty because he/she has closed the

Vikas V Deodhar

In Reply to Simple Indian 3 years ago

Dear All victims of Non-functioning of Ombudsman,

I have a long experience of Complaints to Ombudsman about unlawful charges by Banks, particularly foreign Banks like HSBC, Standard Chartered. The complaints sent to Ombudsman get abruptly closed on the basis of very unacceptable reply from the Banks and without getting to the proof of the complaint.
I am anxious to know what further steps can be taken. Can I go to Consumer Court ? Can I make the Bank and also the Ombudsman itself for dereliction of duty because he/she has closed the

Vikas V Deodhar

In Reply to Vikas V Deodhar 3 years ago

Dear All victims of Non-functioning of Ombudsman,

I have a long experience of Complaints to Ombudsman about unlawful charges by Banks, particularly foreign Banks like HSBC, Standard Chartered. The complaints sent to Ombudsman get abruptly closed on the basis of very unacceptable reply from the Banks and without getting to the proof of the complaint.
I am anxious to know what further steps can be taken. Can I go to Consumer Court ? Can I make the Bank and also the Ombudsman itself as respondent, for dereliction of duty because he/she has closed the Complaint without giving me an opportunity of personal hearing when I can produce further proof of default by the Bank. I had requested for personal hearing in my Complaint.
In all I observe that under RBI, Ombudsman is not taking care of Bank Customer Complaints, RBI Code of Business practices does not even take cognizance of very damaging violations of the Code of Banking Service.
Can I get guidance from Moneylife Legal Cell, for filing Complaint in Consumer Court ?

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)