The Reserve Bank of India has published a report on review of the Banking Ombudsman Scheme 1995 for the period 1998-99 to 2001-02.

According to this report, the number of complaints received during the periods 1999-2000, 2000-01 and 2001-02 stood at 4994, 5803 and 5907 respectively. Comparable figure for the year 1998-99 (April-March) was 6062. As compared to the complaints received during 1998-99, there is a decrease of 2.5 per cent during 2001-02. The maximum number of complaints dealt with during the period under review pertained to deficiency in servicing of loans and advances, followed by deposit accounts and delay in collection of cheques/bills, etc. Majority of the complaints generally emanated from metropolitan and urban centres and very few complaints have been received from rural and semi-urban areas. Maximum number of complaints received for the year ended March 31, 2002 was at Jaipur, which stood at 1021. The average number of complaints disposed off per office stood at 187, 166, 209 and 234 for the years ended March 31, 1999, 2000, 2001 and 2002 respectively and showed an increasing trend.

It may be recalled that to provide for a system of redressal of grievances against banks, the Reserve Bank of India had, on June 14, 1995, introduced the Banking Ombudsman Scheme. The Scheme envisages expeditious and satisfactory disposal of customer complaints in a time bound manner. The Scheme is applicable to all commercial banks having business in India (except Regional Rural Banks) and scheduled primary cooperative banks. There are Banking Ombudsman at 15 centres all over the country.

To improve the effectiveness of the Scheme, the Banking Ombudsman Scheme, 1995 an informal group constituted by the Reserve Bank reviewed the Scheme. The revised Banking Ombudsman Scheme, 2002 came into effect on June 14, 2002. The new Scheme covers all the Regional Rural Banks in addition to all commercial banks and scheduled primary cooperative banks. The new Scheme additionally provides for an institution of a 'Review Authority' to review the Ombudsman's Award. The Banking Ombudsman has now also been authorised to function as an arbitrator for disputes between banks and their customers or between two banks. The value of the subject matter of individual disputes under arbitration should not exceed Rs. ten lakh.

To popularise the Banking Ombudsman Scheme, the Offices of Banking Ombudsman have undertaken campaigns including insertion of advertisements in the local newspapers. The Banking Ombudsman also interact with the forums, such as, chambers of commerce and industry and bank managers' clubs.

The full text of the report is available on the RBI website (www.rbi.org.in).

Alpana Killawala
General Manager

Press Release : 2002-2003/994