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.
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30-day online access to the magazine articles published during the subscription period.
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This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
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Since last yr april 2018 banking ombudsman office Mumbai2 gives me 5 complaint numbers and dispossed each by some time interval just giving reason of pendency of cases not giving proper responce they just delay process and lapps the customers remedy of banking ombudsman scheme 2006. Budget expence of this scheme is increase every year but results are never seen in favour of customers.
This is quasi juridiction system just favour banks dont possitive approach to customers so there are numbers of defficiencies comes in banking ombudsman offices I ask them these deficienccies in handling customer complaints but banking ombudsman office cannot reply me .
levels. Relying of RBI my experience says is a waste of time and money. Activists should fight for these representations in the board
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
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
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 ?