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A project report on


Submitted by: RAHU SINGH B!c"e#or o$ B!n%in& ' In(ur!nce Seme(ter ) *e!r +,-./-0 Under t"e &uid!nce o$ 1ro$2 KISHOR 3HAUHAN Submitted to: Uni4er(ity o$ Mumb!i

Smt2 Su("i#!de4i De("mu%"5 3o##e&e o$ !rt(5 (cience !nd commerce Sector/05 Airo#i5 N!4i Mumb!i/0,,6,7



College of Arts , Science and Commerce of T ! " C#M$"an%ing &Insurance' $SEM V' (ere)* declare t(at I (a+e com,leted t(e ,ro-eon .THE BANKING OMBUDSMAN/ in t(e academic *ear 011230114 T(e information su)mitted is true and #riginal to t(e )est of m* %no5ledge




T(is is to certif* t(at

RAHU SINGH, student

of t(ird *ear "MS of

Smt Sus(ilade+i Des(mu%( College of Arts, Science & Commerce (as successfull* com,leted t(e ,ro-ect 5or% titled .THE



in ,artial fulfillment for t(e degree of "ac(elor of

Commerce$"an%ing &Insurance' Uni+ersit* of Mum)ai T(is ,ro-ect is t(e record of aut(entic 5or% carried out during t(e academic *ear 011230114

67#8 Kis(or C(au(an Vermani $ Internal 9uide' 6rinci,al'

Mrs S(alini


E;ternal 9uide $Sign'

A!!iliate" to #ni$er%it& o! '#'(ai

SECT#7 3 4 AI7#LI $<', =AVI MUM"AI > 411 ?1@ Tel 100 0??A1?B1, 8a; > 100 0??A1?B1

Email sd+-rcollegeC*a(oo com 7E9D =# E 11@ $LATU7' A31031A@@

It gi+es me great ,leasure 5(ile su)mitting t(is ,ro-ect on t(e to,ic ,THE BANKING OMBUDSMAN

T(e com,letion of ,ro-ect 5or% is milestone in students life and its e;ecution is ine+ita)le in t(e (ands of guide <e are (ig(l* inde)ted to our guide -ro!. Ki%.or for (is in+alua)le guidance, a,,reciation and su,,ort gi+en from time to time 5(ile ,re,aring t(is re,ort It is due to (is gi+en sense of direction and e;ecution to t(is ,ro-ect and ultimatel* made it success <e 5ould li%e to render our sincere t(an%s to all our college staff mem)ers and largel* to our ,ro-ect guide for t(eir co3 o,eration and (ig(l* +alued su,,ort and information of t(is re,ort <e 5ould also li%e to e;,ress our dee, regards and gratitude to our I:C 6rinci,al SHALINI VERMANI for (er in+alua)le (el, information of t(e ,ro-ect and collection of t(e im,ortant data)ase for t(e ,ur,ose of com,letion of t(is ,ro-ect I e;,ress m* dee, gratitude to5ards m* famil* mem)er in ta%ing effort 5(ic( (el,ed me in gi+ing final s(a,e and structure to m* ,ro-ect 5or% I am also t(an%ful to all t(ose seen and unseen (eads, 5(ic( (a+e )een a direct or indirect (el, in com,letion of t(is ,ro-ect 5or%

SR.NO. 1 2 3 4 5 6


-AGE NO 6 13 23 36 43 46













The basic services a bank pr vi!es are checkin" acc #n$s% &hich can be #se! 'ike ( ne) $ (ake pa)(en$s an! p#rchase " !s an! services* savin"s !s an! services* acc #n$s an! $i(e !ep si$s $ha$ can be #se! $ save ( ne) + r +#$#re #se* ' ans $ha$ c ns#(ers an! b#sinesses can #se $ p#rchase " an! basic cash (ana"e(en$ services s#ch as check cashin" an! + rei"n c#rrenc) e,chan"e. - #r $)pes + banks specia'i.e in ++erin" $hese basic bankin" services: c ((ercia' banks% savin"s an! ' an ass cia$i ns% savin"s banks% an! cre!i$ #ni ns. A br a!er !e+ini$i n + a bank is an) +inancia' ins$i$#$i n $ha$ receives% c ''ec$s% $rans+ers% pa)s% e,chan"es% 'en!s% inves$s% r sa+e"#ar!s ( ne) + r i$s c#s$ (ers. This br a!er !e+ini$i n inc'#!es (an) pr vi!e ne r ( re $her +inancia' ins$i$#$i ns $ha$ are n $ #s#a'') $h #"h$ + as banks b#$ &hich never$he'ess + $hese br a!') !e+ine! bankin" services. These ins$i$#$i ns inc'#!e +inance c (panies% inves$(en$ c (panies% inves$(en$ banks% ins#rance c (panies% pensi n +#n!s% sec#ri$) br kers an! !ea'ers% ( r$"a"e c (panies% an! rea' es$a$e inves$(en$ $r#s$s. Bankin" services are e,$re(e') i(p r$an$ in a +ree (arke$ ec n () s#ch as $ha$ + #n! in Cana!a an! $he /ni$e! 0$a$es. Bankin" services serve $& pri(ar) p#rp ses. -irs$% b) s#pp')in" c#s$ (ers &i$h $he basic (e!i#(s1 +1 e,chan"e (cash% checkin" acc #n$s% an! cre!i$ car!s)% banks p'a) a ke) r 'e in $he &a) " " !s an! services are p#rchase!. 2i$h #$ $hese +a(i'iar !s c #'! n') be e,chan"e! b) barter ($ra!in" ne (e$h !s + pa)(en$% "

! + r an $her)% &hich is e,$re(e') $i(e1c ns#(in" an! ine++icien$.

0ec n!% b) accep$in" ( ne) !ep si$s +r ( savers an! $hen 'en!in" $he ( ne) $ b rr &ers% banks enc #ra"e $he +' & + ( ne) $ pr !#c$ive #se an! inves$(en$s.

T%PES O! BANKS There are vari #s $)pes + banks &hich pera$e in #r c #n$r) $ (ee$ $he +inancia' re3#ire(en$s + !i++eren$ ca$e" ries + pe p'e en"a"e! in a"ric#'$#re% b#siness% pr +essi n% e$c. On $he basis + +#nc$i ns% $he bankin" ins$i$#$i ns in In!ia (a) be !ivi!e! in$ $he + '' &in" $)pes:1







P01,23 S'3)4* B+(-. P*25+)' S'3)4*. B+(-. !4*'26( B+(-.

P*27+*8 C*'92) S432')2'. C'()*+, C4-4:'*+)25' B+(-. S)+)' C4-4:'*+)25' B+(-.


C'()*+, B+(-.

A bank &hich is en$r#s$e! &i$h $he +#nc$i ns + "#i!in" an! re"#'a$in" $he bankin" s)s$e( + a c #n$r) is kn &n as i$s Cen$ra' bank. 0#ch a bank ! es n $ !ea' &i$h $he "enera' p#b'ic. I$ ac$s essen$ia'') as 4 vern(en$5s banker* (ain$ain !ep si$ acc #n$s + a'' $her banks an! a!vances ( ne) $ banks% &hen nee!e!. The Cen$ra' Bank pr vi!es "#i!ance $ $her $her banks

&henever $he) +ace an) pr b'e(. I$ is $here+ re kn &n as $he banker5s bank. I$ a!vises $he 4 vern(en$ n ( ne$ar) an! cre!i$ p 'icies an! !eci!es n $he in$eres$ ra$es + r bank !ep si$s an! bank ' ans. An $her i(p r$an$ +#nc$i n + $he Cen$ra' Bank is $he iss#ance + c#rrenc) n $es% re"#'a$in" $heir circ#'a$i n in $he c #n$r) b) !i++eren$ (e$h !s. 6 Cen$ra' Bank can iss#e c#rrenc). 2. C477'*32+, B+(-. $her bank $han $he

C ((ercia' Banks are bankin" ins$i$#$i ns $ha$ accep$ !ep si$s an! "ran$ sh r$1$er( ' ans an! a!vances $ $heir c#s$ (ers. In a!!i$i n $ "ivin" sh r$1 $er( ' ans% c ((ercia' banks a's "ive (e!i#(1$er( an! ' n"1$er( ' an $ b#siness en$erprises. C ((ercia' banks are + $hree $)pes:

P01,23 S'3)4* B+(-.

These are banks &here (a7 ri$) s$ake is he'! b) $he 4 vern(en$ + In!ia r Reserve Bank + In!ia. E,a(p'es + p#b'ic sec$ r banks are: 0$a$e Bank + In!ia% C rp ra$i n Bank% Bank + Bar !a an! Dena Bank% e$c

P*25+)' S'3)4*. B+(-.

In case + priva$e sec$ r banks (a7 ri$) + share capi$a' + $he bank is he'! b) priva$e in!ivi!#a's. These banks are re"is$ere! as c (panies &i$h 'i(i$e! 'iabi'i$). - r e,a(p'e: The 8a((# an! 9ash(ir Bank L$!.% Bank +

Ra7as$han L$!.% Deve' p(en$ Cre!i$ Bank L$!% L r! 9rishna Bank L$!.% Bhara$ Overseas Bank L$!.% 4' ba' Tr#s$ Bank% :)s)a Bank% e$c.

!4*'26( B+(-.
These banks are re"is$ere! an! have $heir hea!3#ar$ers in a + rei"n c #n$r) b#$ pera$e $heir branches in #r c #n$r). 0 (e + $he + rei"n banks pera$in" in #r c #n$r) are ; n" 9 n" an! 0han"hai Bankin" C rp ra$i n (;0BC)% Ci$ibank% A(erican E,press Bank% 0$an!ar! & Char$ere! Bank% 4rin!'a)5s Bank% e$c. The n#(ber + + rei"n banks pera$in" in #r c #n$r) has increase! since $he +inancia' sec$ r re+ r(s + <==<. 3. D'5',4:7'() B+(-. +$en re3#ires (e!i#( an! ' n"1$er( capi$a' + r p#rchase +


(achiner) an! e3#ip(en$% + r #sin" 'a$es$ $echn ' ")% r + r e,pansi n an! ( !erni.a$i n. 0#ch +inancia' assis$ance is pr vi!e! b) Deve' p(en$ Banks. The) a's #n!er$ake $her !eve' p(en$ (eas#res 'ike P#b'ic 0ec$ r Banks c (prise <= na$i na'i.e! banks an! 0$a$e Bank + In!ia an! i$s > ass cia$e banks. In!#s$ria' -inance C rp ra$i n + In!ia (I-CI) an! 0$a$e -inancia' C rp ra$i n5s (0-Cs) are e,a(p'es + !eve' p(en$ banks in In!ia. 4. C4-O:'*+)25' B+(-.

Pe p'e &h c (e $ "e$her $ 7 in$') serve $heir c (( n in$eres$ +$en + r( a c 1 pera$ive s cie$) #n!er $he C 1 pera$ive 0 cie$ies Ac$. 2hen a c 1 pera$ive s cie$) en"a"es i$se'+ in bankin" b#siness i$ is ca''e! a C 1 pera$ive Bank. The s cie$) has $ b$ain a 'icense +r ( $he Reserve Bank + In!ia be+ re s$ar$in" bankin" b#siness. An) c 1 pera$ive bank as a s cie$) is $ +#nc$i n #n!er $he vera'' s#pervisi n + $he Re"is$rar% C 1 pera$ive 0 cie$ies + $he 0$a$e. As re"ar!s bankin" b#siness% $he s cie$) (#s$ + '' &

$he "#i!e'ines se$ an! iss#e! b) $he Reserve Bank + In!ia. There are $hree $)pes + c 1 pera$ive banks pera$in" in #r c #n$r):

P*27+*8 C*'92) S432')2'.

These are + r(e! a$ $he vi''a"e r $ &n 'eve' &i$h b rr &er an! n n1

b rr &er (e(bers resi!in" in ne ' ca'i$). The pera$i ns + each s cie$) are res$ric$e! $ a s(a'' area s $ha$ $he (e(bers kn & each $her an! are ab'e $ &a$ch ver $he ac$ivi$ies + a'' (e(bers $ preven$ +ra#!s.

C'()*+, C4-4:'*+)25' B+(-.

These banks pera$e a$ $he !is$ric$ 'eve' havin" s (e + $he pri(ar) cre!i$ s cie$ies be' n"in" $ $he sa(e !is$ric$ as $heir (e(bers. These banks pr vi!e ' ans $ $heir (e(bers (i.e.% pri(ar) cre!i$ s cie$ies) an! +#nc$i n as a 'ink be$&een $he pri(ar) cre!i$ s cie$ies an! s$a$e c 1 pera$ive banks.

S)+)' C4-4:'*+)25' B+(-.

These are $he ape, (hi"hes$ 'eve') c 1 pera$ive banks in a'' $he s$a$es + $he c #n$r). The) ( bi'i.e +#n!s an! he'p in i$s pr per channe'i.a$i n a( n" vari #s sec$ rs. The ( ne) reaches $he in!ivi!#a' b rr &ers +r ( $he s$a$e c 1 pera$ive banks $hr #"h $he cen$ra' c 1 pera$ive banks an! $he pri(ar) cre!i$ s cie$ies.









CUSTOMER COMP$AINTS In $he presen$ scenari + c (pe$i$ive bankin"% e,ce''ence in c#s$ (er ' + r s#s$aine! b#siness "r &$h. C#s$ (er r"ani.a$i ns. As a service

service is $he ( s$ i(p r$an$ $ s

c (p'ain$s are par$ + $he b#siness 'i+e + an) c rp ra$e en$i$). This is ( re + r banks beca#se banks are service r"ani.a$i n% c#s$ (er service an! c#s$ (er sa$is+ac$i n sh #'! be $he pri(e c ncern + an) bank. The bank be'ieves $ha$ pr vi!in" pr (p$ an! e++icien$ service is essen$ia' n $ n') $ a$$rac$ ne& c#s$ (ers% b#$ a's $ re$ain e,is$in" nes. This p 'ic) ! c#(en$ ai(s a$ (ini(" ins$ances + c#s$ (er c (p'ain$s an! "rievances $hr #"h pr per service !e'iver) an! revie& (echanis( an! $ ens#re pr (p$ re!ressa' + c#s$ (er c (p'ain$s an! "rievances. The revie& (echanis( sh #'! he'p in i!en$i+)in" sh r$c (in"s in pr !#c$ +ea$#res an! service !e'iver). C#s$ (er !issa$is+ac$i n & #'! sp i' bank5s na(e an! i(a"e. The Bank5s p 'ic) n "rievance re!ressa' + '' &s $he #n!er n $e! princip'es:

C#s$ (ers be $rea$e! +air') a$ a'' $i(es C (p'ain$s raise! b) c#s$ (ers are !ea'$ &i$h c #r$es) an! n $i(e C#s$ (ers are +#'') in+ r(e!
c (p'ain$s?"rievances &i$hin $he $he bank $ $heir c (p'ain$s. + aven#es $ esca'a$e $heir

r"ani.a$i n an! $heir ri"h$s $

a'$erna$ive re(e!)% i+ $he) are n $ +#'') sa$is+ie! &i$h $he resp nse +

Bank &i'' $rea$ a'' c (p'ain$s e++icien$') an! +air') as $he) can
!a(a"e $he bank5s rep#$a$i n an! b#siness i+ han!'e! $her&ise.


The Bank e(p' )ees (#s$ & rk in " ! +ai$h an! &i$h #$ pre7#!ice
$ $he in$eres$s + $he c#s$ (er. In r!er $ (ake bank5s re!ressa' (echanis( ( re (eanin"+#' an!

e++ec$ive% a s$r#c$#re! s)s$e( nee!s $ be b#i'$ #p $ &ar!s s#ch en!. 0#ch s)s$e( & #'! ens#re $ha$ $he re!ressa' s #"h$ is 7#s$ an! +air an! is &i$hin $he "iven +ra(e1& rk + r#'es an! re"#'a$i n. The p 'ic) ! c#(en$ & #'! be (a!e avai'ab'e a$ a'' branches. A'' e(p' )ees + $he Bank sh #'! be (a!e a&are ab #$ $he C (p'ain$ han!'in" pr cess

T<' 30.)47'* 347:,+2() +*2.'. 90' )4=

The a$$i$#!ina' aspec$s in !ea'in" &i$h c#s$ (ers Ina!e3#ac) + $he +#nc$i ns?arran"e(en$s (a!e avai'ab'e $ $he
c#s$ (ers r "aps in s$an!ar!s + services e,pec$e! an! ac$#a' services ren!ere!.

The c#s$ (er is havin" +#'' ri"h$ $ re"is$er his c (p'ain$ i+ he is n $

sa$is+ie! &i$h $he services pr vi!e! b) $he bank. ;e can "ive his c (p'ain$ in &ri$in"% ra'') r ver $e'eph ne. I+ c#s$ (er5s c (p'ain$ is n $ res 've! &i$hin "iven $i(e r i+ he is n $ sa$is+ie! &i$h $he s '#$i n pr vi!e! b) $he bank% he can appr ach Bankin" O(b#!s(an &i$h his c (p'ain$ r $her 'e"a' aven#es avai'ab'e + r "rievance re!ressa'.




An (b#!s(an is a pers n &h has been app in$e! $ '

k in$ c (p'ain$s

ab #$ an r"ani.a$i n. /sin" an (b#!s(an is a &a) + $r)in" $ res 've a c (p'ain$ &i$h #$ " in" $ c #r$. Bankin" O(b#!s(an is a 3#asi 7#!icia' a#$h ri$) +#nc$i nin" #n!er In!ia5s Bankin" O(b#!s(an 0che(e% an! $he a#$h ri$) &as crea$e! p#rs#an$ $ $he a !ecisi n b) $he 4 vern(en$ + In!ia $ enab'e res '#$i n + c (p'ain$s + c#s$ (ers + banks re'a$in" $ cer$ain services ren!ere! b) $he banks. The Bankin" O(b#!s(an 0che(e &as +irs$ in$r !#ce! in In!ia in <==@% an! &as revise! in ABBA an! ABBC. In $he &ake + $he +ai'#re in $he e++icien$ services + $he banks% $he RBI br #"h$ a sche(e + r $he pr (p$% e++icien$ an! c #r$e #s services an! a's $ pr $ec$ $he ri"h$s + $he c#s$ (ers. The Bankin" O(b#!s(an is an ++icia' a#$h ri$) $ inves$i"a$e $he

c (p'ain$ +r ( $he c#s$ (ers an! a!!ress $he c (p'ain$ an! $hereb) brin" $he s '#$i n a( n" $he a""rieve! par$ies. 0 $he Bankin" O(b#!s(an p'a)s $he r 'e + a (e!ia$ r an! serves $he p#rp se + rec nci'ia$i n. The Bankin" O(b#!s(an has been !e+ine! #n!er c'a#se D + $he Bankin" O(b#!s(an 0che(e% ABBC.



The Bankin" O(b#!s(an is a 3#asi 7#!icia' a#$h ri$). I$ has p &er

$ s#(( n b $h $he par$ies 1 bank an! i$s c#s$ (er% $ +aci'i$a$e res '#$i n + c (p'ain$ $hr #"h (e!ia$i n.

A'' 0che!#'e! C ((ercia' Banks% Re"i na' R#ra' Banks an!

0che!#'e! Pri(ar) C 1 pera$ive Banks are c vere! #n!er $he 0che(e.

The Bankin" O(b#!s(an has p &er $ c nsi!er c (p'ain$s +r (

6 n1Resi!en$ In!ians havin" acc #n$s in In!ia in re'a$i n $ $heir re(i$$ances +r ( abr a!% !ep si$s an! $her bank1re'a$e! (a$$ers.

The Bankin" O(b#!s(an ! es n $ char"e an) +ee + r res 'vin"

c#s$ (ers5 c (p'ain$s. C (p'ain$ can be (a!e be+ re a Bankin" O(b#!s(an n $he sa(e

s#b7ec$ (a$$er + r &hich an) pr cee!in"s be+ re an) c #r$% $rib#na' r arbi$ra$ r r an) $her + r#( is pen!in" r a !ecree r a&ar! r a +ina' r!er% has a'rea!) been passe! b) an) s#ch c (pe$en$ c #r$% $rib#na'% arbi$ra$ r r + r#(.


The O(b#!s(an sha'' en3#ire in$ an! inves$i"a$e in acc r!ance

&i$h $he pr visi ns + $he Ac$% an! $ake ac$i n r s$eps as (a) be prescribe! b) $he Ac$ an! c ncernin"1

Prac$ices an! ac$i ns b) pers ns% en$erprises an! $her priva$e

ins$i$#$i ns &here c (p'ain$s a''e"e $ha$ vi 'a$i ns + +#n!a(en$a' ri"h$s an! +ree! (s have $aken p'ace.

A'' ins$ances r (a$$ers + a''e"e! r s#spec$e! c rr#p$i n an!

$he (isappr pria$i n + p#b'ic ( ne)s r $her p#b'ic pr per$) b) ++icia's.

2i$h #$ !er "a$in" +r ( $he pr visi ns% an) re3#es$ r c (p'ain$ in

respec$ + ins$ances r (a$$ers re+erre! $ in $ha$ pr visi ns% (a) inc'#!e an) ins$ance r (a$$er in respec$ + &hich $he O(b#!s(an has reas n $ s#spec$1

Tha$ $he pr visi ns + an) 'a& r #n!er $he a#$h ri$) + $he 0$a$e
r b) an) pers n in i$s e(p' )(en$% r $ha$ an) prac$ice is s + '' &e!% in a (anner &hich is n $ in $he p#b'ic in$eres$.

Tha$ $he p &ers% !#$ies r +#nc$i ns &hich ves$ in $he 0$a$e r%

b !) r ins$i$#$i n% r an) pers n in i$s e(p' )(en$ are e,ercise! r per+ r(e! in an irre"#'ar (anner.

Tha$ ( ne)s + r(in" par$ + $he +#n!s + $he 0$a$e r b !) r

ins$i$#$i n% r receive! r he'! b) r n beha'+ + $he 0$a$e r b !) r ins$i$#$i n are bein" r have been !ea'$ &i$h an irre"#'ar (anner.

An) pers n &ishin" $ 'a) an) ins$ance r (a$$er re+erre! $ in

pr visi ns be+ re $he O(b#!s(an sha'' ! s in s#ch (anner as $he O(b#!s(an (a) !e$er(ine r a'' &.

The O(b#!s(an sha'' n $ be re3#ire! $ inves$i"a$e an) ins$ance r

(a$$er re+erre! $ in $he pr visi ns &hich has been 'ai! be+ re hi( r her #n!er $he pr visi ns &hen $he "r #n!s n acc #n$ + &hich $he in3#ir) is !esire! is in $he pini n + $he O(b#!s(an.


The pr visi ns sha'' n $ app') in respec$ + an) !ecisi n $aken in r in c nnec$i n &i$h an) civi' r cri(ina' case b) a c #r$ + 'a&.


T%PES O! OMBUDSMAN B+(-2(6 O7109.7+( S.E.B.I. O7109.7+( T%PES O! OMBUDSMAN

T%PES O! OMBUDSMAN E,'3)*232)8 O7109.7+( T','347 O7109.7+(

I(347' T+> O7109.7+(

I(.0*+(3' O7109.7+(

B+(-2(6 O7109.7+(
The Reserve Bank + In!ia (RBI) +irs$ in$r !#ce! $he Bankin" O(b#!s(an 0che(e In<==@% &hich has been revise! in ABBA an! ABB@. The 'a$es$ revise! 0che(e has c (e in$ + rce +r ( <s$ 8an ABBC.

S.E.B.I. O7109.7+(

The 0ec#ri$ies E,chan"e B ar! + In!ia (0EBI) #n!er sec$i n EB rea! &i$h s#b1sec$i n (<) + sec$i n << + $he 0EBI Ac$% <==A% has +ra(e! $he 0EBI (O(b#!s(an) Re"#'a$i ns% ABBE% &hich &ere n $i+ie! n A<s$ A#"#s$ ABBE. The Re"#'a$i ns pr vi!e! + r $he es$ab'ish(en$ + $he ++ice + O(b#!s(an $ re!ress $he 4rievance + inves$ rs in sec#ri$ies an! c nnec$e! (a$$ers. The 'is$e! c (panies an! re"is$ere! s$ ck in$er(e!iaries have $ !isc' se $he na(e a!!ress an! $her par$ic#'ars + (b#!s(an in $heir + r $he bene+i$ + $he inves$ rs.

E,'3)*232)8 O7109.7+(
The E'ec$rici$) Re"#'a$ r) C ((issi n% #n!er sec$i n <F< rea! &i$h s#b1 sec$i n (@) + sec$i n DA + $he E'ec$rici$) Ac$% ABBE% iss#es "#i!e'ines + r es$ab'ish(en$ + + r#( an! O(b#!s(an + r re!ressa' + "rievances + E'ec$rici$) c ns#(ers. The De'hi Re"#'a$ r) C ((issi n (DERC) vi!e i$s 6 $i+ica$i n !a$e! <<$h March% ABBC has iss#e! DERC (4#i!e'ines + r es$ab'ish(en$ + - r#( + re!ressa' + "rievance + $he c ns#(er an! O(b#!s(an) Re"#'a$i ns% ABBE. I$ (a) be n $e! $ha$ $he O(b#!s(an is $he APPELLATE A#$h ri$) #n!er $he E'ec$rici$) Ac$ ABBE% an! $he DERC Re"#'a$i ns% ABBE an! $here+ re an e'ec$rici$) c ns#(er has $ +irs$ appr ach $he C ns#(er 4rievance Re!ressa' - r#( es$ab'ishe! #n!er $he DERC Re"#'a$i ns% ABBE.

T','347 O7109.7+(


The Te'ec ( Re"#'a$ r) A#$h ri$)

+ In!ia Ac$% <==>% e(p &ers $he

Te'ec ( Re"#'a$ r) A#$h ri$) + In!ia Ac$ <==>% e(p &ers $he Te'ec ( Re"#'a$ r) A#$h ri$) + In!ia (TRAI) $ (ake $he rec ((en!a$i ns n 'a)in" ! &n $he s$an!ar!s + 3#a'i$) + services $ be pr vi!e! b) $he services pr vi!ers an! c n!#c$ $he in$eres$ + $he peri !ica' s#rve)s + Te'ec ( services s as $ pr $ec$ $he in$eres$ + $he c ns#(ers. The $e'ec ( pera$ rs +re3#en$') $hrea$en $ !isc nnec$s $he ph nes an! &i$h !ra& $he n#(bers "iven $ s#bscribers i+ $he !ea!'ine + r pa)(en$ is (isse! b) a !a) k in$ $he "rievances + in!ivi!#a' c#s$ (ers n r r $here is (isca'c#'a$i n + $he $inies$ a( #n$. The TRAI is% h &ever% nei$her e(p &ere! $ ' $ake ac$i n a"ains$ $he pera$ rs &h ! n $ (ee$ 3#a'i$) + s$an!ar!s As $here is n specia'i.e! b !) $ re!ress $he "rievance + $e'ec ( c#s$ (ers% $he) have $ appr ach c ns#(er + r#( se$#p #n!er T;E C ns#(er Pr $ec$i n Ac$% <=FC% r civi' c #r$s + r Res '#$i ns a!7#!ica$i n + !isp#$es.

I(347' T+> O7109.7+(

The " vern(en$ is c nsi!erin" crea$in" an ++ice + Inc (e Ta,

O(b#!s(an $ pr $ec$ in!ivi!#a' $a,pa)er5s ri"h$. The O(b#!s(an &i'' i!en$i+) iss#es $ha$ increase $he c (p'iance b#r!en r crea$e pr b'e(s + r $a,pa)ers an! brin" $h se iss#es $ $he a$$en$i n + $he (inis$r) + -inance. The O(b#!s(an &i'' (ake appr pria$e 'e"is'a$ive pr p sa' &here necessar) an! sen! peri !ica' rep r$s $ $he Depar$(en$ + Reven#e% s#""es$in" appr pria$e ac$i n. I$ is pr p se! $ ini$ia'') se$#p ++ices + O(b#!s(an a$ De'hi% M#(bai% 9 'ka$a an! Chennai.


I(.0*+(3' O7109.7+(
The 4 vern(en$ + In!ia% Minis$er + -inance% Depar$(en$ + Ec n (ics A++airs% Ins#rance Divisi n #n!er sec$i n <<D (<) + Ins#rance Ac$% <=EF% has +ra(e! $he GRe!ressa' + P#b'ic 4rievance R#'es% <==FH% + r app in$(en$ + Ins#rance O(b#!s(an% &hich c (es in$ + rce &i$h e++ec$ +r ( <<$h 6 ve(ber <==F. The Ins#rance O(b#!s(an has s$ar$e! +#nc$i nin" +r ( <===% $ pr vi!e + r e++icien$% c s$ e++ec$ive an! i(par$ia' se$$'e(en$ + c'ai(s an! "rievance + an) pers n a"ains$ a Li+e r 4enera' Ins#rance in P#b'ic an! priva$e sec$ r. The (eanin" + e,pressi n Ian) $her pers n5 is &i!er $han Ic ns#(er5 an! $here+ re% even $hir! par$) havin" "rievance &i$h respec$ $ O(b#!s(an. an Ins#rance c n$rac$ can appr ach $he


GROUNDS O! CUSTOMERS COMP$AINTS CONSIDERED B% BANKING OMBUDSMAN The Bankin" O(b#!s(an can receive an! c nsi!er an) c (p'ain$ re'a$in" $ $he + '' &in" !e+icienc) in bankin" services (inc'#!in" in$erne$ bankin"): n n1pa)(en$ r in r!ina$e !e'a) in $he pa)(en$ r c ''ec$i n +

che3#es% !ra+$s% bi''s e$c.* n n1accep$ance% &i$h #$ s#++icien$ ca#se% + s(a'' !en (ina$i n n $es $en!ere! + r an) p#rp se% an! + r char"in" + c ((issi n in respec$ $here +* n n1accep$ance% &i$h #$ s#++icien$ ca#se% + c ins $en!ere! an! + r char"in" + c ((issi n in respec$ $here +* n n1pa)(en$ r !e'a) in pa)(en$ + in&ar! re(i$$ances * +ai'#re $ iss#e r !e'a) in iss#e + !ra+$s% pa) r!ers r bankers5 che3#es* n n1a!herence $ prescribe! & rkin" h #rs * +ai'#re $ pr vi!e r !e'a) in pr vi!in" a bankin" +aci'i$) ( $her $han ' ans an! a!vances) pr (ise! in &ri$in" b) a bank r i$s !irec$ se''in" a"en$s* c (p'ain$s +r ( 6 n1Resi!en$ In!ians havin" acc #n$s in In!ia in re'a$i n $ $heir re(i$$ances +r ( abr a!% !ep si$s an! $her bank1 re'a$e! (a$$ers* 'ev)in" + char"es &i$h #$ a!e3#a$e pri r n $ice $ $he c#s$ (er*


n n1a!herence b) $he bank r i$s s#bsi!iaries $ $he ins$r#c$i ns + Reserve Bank pera$i ns* re+#sa' $ accep$ r !e'a) in accep$in" pa)(en$ $ &ar!s $a,es% as re3#ire! b) Reserve Bank?4 vern(en$* re+#sa' $ iss#e r !e'a) in iss#in"% r +ai'#re $ service r !e'a) in servicin" r re!e(p$i n + 4 vern(en$ sec#ri$ies* + rce! c' s#re s#++icien$ reas n* + !ep si$ acc #n$s &i$h #$ !#e n $ice r &i$h #$ n ATM?Debi$ car! pera$i ns r cre!i$ car!

PROCEDURE !OR !I$ING COMP$AINT An) pers n &h has a "rievance a"ains$ a bank n an) ne r ( re + $he "r #n!s (en$i ne! ab ve% (a)% hi(se'+ r $hr #"h his a#$h ri.e! represen$a$ive ( $her $han an a!v ca$e)% (ake a c (p'ain$ $ $he Bankin" O(b#!s(an &i$hin &h se 7#ris!ic$i n $he branch r ++ice + $he bank c (p'aine! a"ains$ is ' ca$e!. C (p'ain$s arisin" #$ + $he pera$i ns + cre!i$ car!s% sha'' be +i'e! be+ re $he Bankin" O(b#!s(an &i$hin &h se $erri$ ria' 7#ris!ic$i n $he bi''in" a!!ress + $he car! h '!er is ' ca$e! an! n $ $he p'ace &here $he bank c ncerne! r $he cre!i$ car! pr cessin" #ni$ is ' ca$e!. The c (p'ain$ sha'' be (a!e in &ri$in" !#') si"ne! b) $he c (p'ainan$ r his a#$h ri.e! represen$a$ive an! sha'' as +ar as p ssib'e be in $he + r( an! sha'' c n$ain s#ch par$ic#'ars as speci+ie! in $he 0che(e.


The c (p'ainan$ sha'' +i'e a' n" &i$h $he c (p'ain$% c pies $ha$ $he c (p'ain$ is (ain$ainab'e as per c'a#se =(E) + $he 0che(e.. A c (p'ain$ can a's be (a!e $hr #"h e'ec$r nic (eans. The c (p'ainan$ sha'' be+ re (akin" a c (p'ain$ $ O(b#!s(an% (ake a &ri$$en represen$a$i n $ $he bank.

+ $he

! c#(en$s% i+ an)% &hich he pr p ses $ re') #p n an! a's a !ec'ara$i n

$he Bankin"

The c (p'ain$ can be +i'e! i+ $he bank has re7ec$e! $he c (p'ain$ r $he c (p'ainan$ ha! n $ receive! an) rep') &i$hin a peri ! + ne ( n$h a+$er $he bank receive! his represen$a$i n r i+ $he c (p'ainan$ is n $ sa$is+ie! &i$h $he rep') "iven $ hi( b) $he bank.



The Bankin" O(b#!s(an 0che(e% <==@ &as n $i+ie! b) RBI n 8#ne <D% <==@ in $er(s + $he p &ers c n+erre! n $he Bank b) 0ec$i n E@A + $he Bankin" Re"#'a$i n Ac$% <=D= $ pr vi!e + r a s)s$e( + re!ressa' + + "rievances a"ains$ banks. The 0che(e s #"h$ $ es$ab'ish a s)s$e(

e,pe!i$i #s an! ine,pensive res '#$i n + c#s$ (er c (p'ain$s. The 0che(e is in pera$i n since <==@ an! has been revise! !#rin" $he )ears ABBA an! ABBC. The 0che(e is bein" e,ec#$e! b) Bankin" O(b#!s(en app in$e! b) Reserve Bank a$ <@ cen$ers c verin" $he en$ire c #n$r). As (an!a$e! b) $he Bankin" O(b#!s(an 0che(e% $he Bankin" O(b#!s(en s#b(i$ an Ann#a' Rep r$ n $he +#nc$i nin" + $heir ++ices ever) )ear. Base! n s#ch rep r$s% an Ann#a' Rep r$ + r $he Bankin" O(b#!s(an 0che(e in a &h 'e is prepare! a$ Reserve Bank + In!ia% Cen$ra' O++ice. As is bein" $he prac$ice% $he Ann#a' Rep r$ c vers $he 'as$ +ive1)ear peri ! &i$h + c#s n $he c#rren$ )ear. -#r$her% as a res#'$ + c (p#$eri.a$i n + $he +#nc$i nin" + Bankin" O(b#!s(an O++ices $hr #"h $he C (p'ain$ Trackin" 0 +$&are% !e$ai'e! ana')sis &as p ssib'e n $he in+ r(a$i n per$ainin" $ )ear ABBC1B>. 2i$h $he !ecisi n $ (er"e $he Bankin" O(b#!s(an O++ices &i$h $ha$ + RBI ++ices% $he acc #n$in" peri ! + r $he Bankin" O(b#!s(an O++ices &as chan"e! +r ( Apri' <1March E< $ 8#') <18#ne EB $ be in c n"r#en$ &i$h $ha$ + RBI ++ices. Acc r!in"')% $he in+ r(a$i n ana')se! + r $he )ear ABBC1B> per$ains $ $he peri ! 8#') <% ABBC $ 8#ne EB% ABB>.


SCOPE O! THE SCHEME The Bankin" O(b#!s(an 0che(e% ABBA c vere! a'' $he Re"i na' R#ra' Banks in a!!i$i n $ a'' C ((ercia' Banks an! 0che!#'e! Pri(ar) C 1 pera$ive Banks% &hich &ere a'rea!) c vere! b) ear'ier Bankin" O(b#!s(an 0che(e% <==@. There is n chan"e in $his re"ar! in $he Bankin" O(b#!s(an 0che(e% ABBC. In ABBC% $he Reserve Bank + In!ia ann #nce! $he revise! Bankin"

O(b#!s(an 0che(e &i$h en'ar"e! sc pe $ha$ inc'#!e! c#s$ (er c (p'ain$s n cer$ain ne& areas% s#ch as% cre!i$ car! c (p'ain$s% !e+iciencies in pr vi!in" $he pr (ise! services even b) banksJ sa'es a"en$s% 'ev)in" service char"es &i$h #$ pri r n $ice $ $he c#s$ (er an! n n a!herence $ $he +air prac$ices c !e as a! p$e! b) in!ivi!#a' banks. The i(p r$an$ ne& "r #n!s + c (p'ain$s a!!e! inc'#!e cre!i$ car! iss#es% +ai'#re in pr vi!in" $he pr (ise! +aci'i$ies% n n1a!herence $ +air prac$ices c !e% 'ev)in" + e,cessive char"es &i$h #$ pri r n $ice an! iss#es per$ainin" $ accep$in" pa)(en$ $ &ar!s $a,es an! iss#in"?servicin" + 4 vern(en$ sec#ri$ies. The "r #n!s + c (p'ain$s have been en#(era$e! in C'a#se F + $he Bankin" O(b#!s(an 0che(e% ABBC.

OPERATIONA$ISATION Reserve Bank + In!ia pera$i na'ise! $he Bankin" O(b#!s(an 0che(e b) es$ab'ishin" Bankin" O(b#!s(an O++ices a$ <@ cen$ers a'' ver $he c #n$r). The na(es% a!!resses an! area + pera$i n + $he Bankin" O(b#!s(en have been "iven in $ Anne,#re IA5. Reserve Bank +ra(es $he "#i!e'ines + r pera$i na'" $he 0che(e an! s#pervises $he r#nnin" + $he 0che(e. I$

a's s#pervises $he r#nnin" + $he 0che(e an! a!(inis$ra$ive arran"e(en$s% b#!"e$ an! e,pen!i$#re + $he Bankin" O(b#!s(an O++ices.

PER!ORMANCE O! THE O!!ICES O! BANKING OMBUDSMAN The per+ r(ance + $he O++ices + $he Bankin" O(b#!s(an &as ana').e! n $he aspec$s s#ch as $he 3#an$#( + c (p'ain$s han!'e! b) $he(% $he $i(e'iness in han!'in" $he iss#es% an! appr pria$eness + $he !ecisi ns "iven a"ains$ $he c (p'ain$s.

N071'* 4? C47:,+2(). R'3'25'9

The n#(ber + c (p'ain$s receive! b) $he Bankin" O(b#!s(an O++ices ha! c ns$an$') increase! in $he 'as$ +ive )ears. There &as ( re $han $hree+ '! increase in $he n#(ber + c (p'ain$s receive! in $he )ear ABBC1B> +r ( $he previ #s )ear a+$er $he Bankin" O(b#!s(an 0che(e% ABBC &as n $i+ie!. The increasin" receip$ &as a's bserve! in $he )ear ABB>1BF &i$h a ADK increase +r ( $he )ear ABBC1B>. The avera"e n#(ber + c (p'ain$s receive! per Bankin" O(b#!s(an O++ice has a's increase! +r ( @@B in ABBE1BD $ E<=A in ABB>1BF.


N071'* 4? 347:,+2(). *'3'25'9 18 )<' B+(-2(6 O7109.7+( O??23'.


N4 4? O??23'. 4? B+(-2(6 O7109.7+(

C47:,+2(). *'3'25'9 90*2(6 )<' 8'+* N4. C<+(6' ?*47 P*'5240. 8'+* L@EK LAFK LABBK LAAK @24A

A5'*+6' N4. 4? 347:,+2(). :'* 4??23'


<@ <@ <@ <@ 15


@@B >BD A<<@ A@>C 3192

The increase in $he n#(ber + c (p'ain$s receive! !#rin" $he )ears ABB@1BC an!ABBC1B> can be a$$rib#$e! $ ne& areas s#ch as cre!i$ car! c (p'ain$s inc'#!e! an! $ +aci'i$a$i n + c (p'ain$ s#b(issi n b) a'' &in" c (p'ain$

s#b(issi n in an) + r( inc'#!in" b) n'ine an! b) e(ai' a'' &e! in $he Bankin" O(b#!s(an 0che(e% ABBC. Per ( n$h receip$ in $he n#(ber + c (p'ain$s receive! #n!er $he BO 0che(e ABBC &as ( re $han $hrice $he n#(ber + c (p'ain$s receive! #n!er $he Bankin" O(b#!s(an 0che(e% ABBA. The increase in $he n#(ber + c (p'ain$s receive! #n!er $he Bankin" $he previ #s sche(e c'ear')

O(b#!s(an 0che(e ABBC as c (pare! $

in!ica$es $he e,$en$ $ &hich $he sche(e has bene+i$e! 'ar"er sec$i ns + $he bankin" c#s$ (ers. The c (para$ive e++ec$s + $he Bankin" O(b#!s(an 0che(es ABBA an! ABBC in c (p'ain$ receip$ are "iven as be' &:

N071'* 4? 347:,+2(). *'3'25'9 2( 2005-06 +(9 2006-0"


S3<'7' *0((2(6

N4. 4? 347:,+2(). !*47 T4 T4)+, *'3'25'9 T4)+, P'*

!*47 B<.BD.ABB @ 01.01.200 6

T4 E<.<A.ABB @ 30.06.200 "

T4)+, = ( n$hs 18 74()<. BO 0che(e% ABBA BO S3<'7', 2006


74()< <BFB




D2.:4.+, 4? C47:,+2(). +

D#rin" $he )ear ABB>1BF% $he Bankin" O(b#!s(an O++ices !isp se!

D=<BB c (p'ain$s (inc'#!in" +r ( $he c (p'ain$s pen!in" a$ $he be"innin" + $he )ear an! $h se receive! !#rin" $he )ear). O+ $hese% A<>D> c (p'ain$s (D=K) &ere se$$'e! $ $he sa$is+ac$i n + $he c (p'ainan$s% <@=<D c (p'ain$s (ECK) c #'! n $ be c nsi!ere! #n!er $he sche(e &in" $ severa' reas ns 'ike bein" #$si!e $he p#rvie& + $he sche(e% $i(e1barre!% &i$h #$ s#++icien$ ca#se% +riv ' #s% pen!in" in $her + ra% e$c. A sa(p'e ana')sis + >@C c (p'ain$s $ha$ c #'! n $ be c nsi!ere! #n!er $he sche(e !isc' se! $ha$ DAK + s#ch c (p'ain$s +e'' #$si!e $he p#rvie& + $he sche(e an! AEK &ere +irs$ res r$ c (p'ain$s an! c #'! n $ be $aken #p b) $he Bankin" O(b#!s(en. In <<K + $he c (p'ain$s% !e+icienc) + service c #'! n $ be es$ab'ishe! an! $he re(ainin" ADK c (p'ain$s c #'! n $ be c nsi!ere! + r reas ns 'ike $he) &ere pen!in" in $her + ra r $he c (p'ain$s re3#ire! c nsi!era$i n + e'ab ra$e ! c#(en$ar) an! ra' evi!ence e$c. De$ai's + !isp sa' + c (p'ain$s ver $he 'as$ +ive )ears are +#rnishe! in $he + '' &in" $ab'e:

D2.:4.+, 4? C47:,+2(). 18 B+(-2(6 O7109.7+( O??23'.





2006-0" 200"-08

T4)+, 347:,+2(). 9'+,) B2)< 90*2(6 )<' 8'+* C47:,+2(). .')),'9 )4 )<' .+)2.?+3)24( 4? 347:,+2(+(). C+D C47:,+2(). )<+) 340,9 (4) 1' 34(.29'*'9 0(9'* )<' .3<'7' C1D T4)+, (071'* 4? 347:,+2(). 92.:4.'9 4? C+@1D C47:,+2(). 0(9'* :*43'..






E==F (DAK)

@DDB (D@K)

<D=E< (D@K)

A<>D> (D=K)

29365 C53AD

DB<< (DAK)

D=CE (D<K)


<@=<D (ECK)

19"35 C36AD





49100 C89AD

<D>D (<CK)

<CE< (<DK)

C<AF (<FK)

><B@ (<CK)

5892 C11AD

M49' 4? D2.:4.+, 4? C47:,+2().

The Bankin" O(b#!s(en !isp se! + c (p'ain$s% $her $han $he c (p'ain$s $ha$ c #'! n $ be c nsi!ere!% ei$her b) (#$#a' se$$'e(en$ r b) iss#in" an A&ar!. D#rin" $he peri ! revie&e!% $he ra$i + c (p'ain$s !isp se! b) se$$'e(en$ $ $he c (p'ain$s !isp se! b) a&ar! &as ar #n! ==:< c'ear')

in!ica$in" $he e++ec$iveness

+ $he Bankin" O(b#!s(en in arrivin" a$

(#$#a'') a"ree! c nsens#s be$&een bankers an! c (p'ainan$s. D#rin" $he peri ! ab ve% n') @CE a&ar!s &ere iss#e! &hich + r(e! 'ess $han AK + $he $ $a' D=%A@E c (p'ain$s !isp se! +. -r ( $he )ear ABBC1B>% $he n#(ber + a&ar!s iss#e! an! $he percen$a"e + !isp sa' $hr #"h a&ar! iss#ance have c (e ! &n !espi$e h#"e increase in $he c (p'ain$s receive!. De$ai's are as "iven $ab'e be' &. The +ac$ $ha$ $he Bankin" O(b#!s(en c #'! !isp se + ( re $han =FK $ + $he c (p'ain$s b) (#$#a' se$$'e(en$ be$&een $he c (p'ainan$ an! $he c ncerne! banks $ $heir sa$is+ac$i n in!ica$es $ha$ $he) k appr pria$e !ecisi ns $akin" in$ c nsi!era$i n a'' $he re'evan$ an! e,$an$ 'e"a' an! bankin" ins$r#c$i ns an! prac$ice.

M49' 4? 92.:4.+, 4? 347:,+2(). CO)<'* )<+( 347:,+2(). )<+) 340,9 (4) 1' 34(.29'*'9D S*. N4. %'+* N4. 4? 347:,+2(). 92.:4.'9 1. 2. 3. 4. 5. ABBE1ABBD ABBD1ABB@ ABB@1ABBC ABBC1ABB> 200"-2008 4? E==F @DDB <D=E< A<>D> 29365 N4. <A< <C@ <DC FD "0 D2.:4.+, 18 AB+*9 A A.A< E.BE B.=F B.E= 0.24 Disp sa' b) se$$'e(en$ 6 . K EF>> @A>@ <D>F@ A<CCA A=A=@ =>.>F =C.=> ==.BA ==.C< ==.>C


A(+,8.2. 4? C47:,+2().= A(+,8.2. 4? C47:,+2(). 9'+,) B2)< - C+)'64*82.'

The ana')sis + c (p'ain$s receive! a$ $he Bankin" O(b#!s(an ++ices inc'#!es ana')sis + s#b7ec$ ca$e" r) + c (p'ain$s an! $he bank1"r #ps a"ains$ &hich $he c (p'ain$s &ere (a!e. C (p#$eri.a$i n +#nc$i nin" + $he + Bankin" O(b#!s(an O++ices $hr #"h $he C (p'ain$

Trackin" 0 +$&are has enab'e! !e$ai'e! ana')sis in $his re"ar!. The (a,i(#( n#(ber + c (p'ain$s !ea'$ &i$h !#rin" $he 'as$ +ive1)ear peri ! per$aine! $ c (p'ain$s re"ar!in" !ep si$ acc #n$s% !e+icienc) in servicin" + ' ans an! a!vances an! !e'a) in c ''ec$i n + che3#es?bi''s% e$c% besi!es $he (isce''ane #s c (p'ain$s. The !e$ai's are "iven in $he + '' &in" $ab'e:


A(+,8.2. 4? 347:,+2(). 9'+,) B2)< - 3+)'64*8-B2.'

C+)'64*8 D':4.2) A3340(). $4+(. +(9 A95+(3'. C4,,'3)24( 4? 3<'E0'.F12,,. O)<'*.

2002-03 <>F= (A>K) <C@< (A@K) =BF (<DK) A<@F (EDK)

2003-04 A@BB (ACK) <AAC (<EK) <BB< (<<K) D>@C (@BK) 9483

2004-05 EAE= (A>K) AA=< (<=K) <AD@ (<BK) @A@= (DDK) 12034

2005-06 C>EE (ABK) @A<@ (<CK) EB@F (=K) <FE@> (@@K) 33363

2006-0" 5803 C15AD 5151 C13AD 4058 C11AD 23626 C61AD 38638



; &ever% !#rin" $he )ear ABBC1B>% $he (a,i(#( n#(ber + c (p'ain$s receive! per$aine! $ cre!i$ car!s a$ ABK. C (p'ain$s per$ainin" $ !ep si$ acc #n$s% ' ans an! a!vances an! re(i$$ances cc#pie! $he ne,$ $hree p'aces in $he n#(ber + c (p'ain$s receive!. The !e$ai's are sh &n be' &.

C47:,+2(). *'3'25'9 2( 200"-08= C+)'64*8-B2.'


O$hers 6 $es?C ins D0AJs e$c -ai'#re n c ((i$(en$s Pensi n Char"es L ans an! A!vances 1 ; #sin" L ans an! A!vances 14enera' Cre!i$ car!s Re(i$$ances Dep si$ Acc #n$s




C47:,+2(). *'3'25'9 2( 2006-0" # 200"-08= C+)'64*8-B2.'



N+)0*' 4? 347:,+2()

R'3'25'9 90*2(6 2006-0" 200"-08 @FBE DB@F >CFF DDDA >B= A@=D <B>B <DC= <BE= <EB =CEC 38638 @C<A @A<E <B<A= @A=> >@> E>DB <@FA CEFF E<AF <D< @=BB 4"88"

1. 2. 3. 4. 5. 6. ". 8. 9. 10. 11.

Dep si$ acc #n$s Re(i$$ances Cre!i$ car!s L ans an! a!vances 1 4enera' L ans an! a!vances 1 ; #sin" Char"es &i$h #$ n $ice Pensi n -ai'#re n c ((i$(en$s (a!e D0As an! rec ver) a"en$s 6 $es an! c ins O$hers T4)+,

COST DETAI$S O! RUNNING THE SCHEME The c s$s + $he 0che(e inc'#!e $he reven#e e,pen!i$#re an! capi$a' ++ices. The

e,pen!i$#re inc#rre! in r#nnin" $he Bankin" O(b#!s(an

reven#e e,pen!i$#re inc'#!es $he es$ab'ish(en$ i$e(s 'ike sa'ar) an! a'' &ances + $he s$a++ a$$ache! $ Bankin" O(b#!s(an ++ices an! n n1 es$ab'ish(en$ i$e(s s#ch as ren$% $a,es% ins#rance% 'a& char"es% p s$a"e an! $e'e"ra( char"es% prin$in" an! s$a$i ner) e,penses% p#b'ici$) e,penses% !eprecia$i n an! $her (isce''ane #s i$e(s. The capi$a' e,pen!i$#re i$e(s inc'#!e $he +#rni$#re% e'ec$rica' ins$a''a$i ns% c (p#$ers?re'a$e! e3#ip(en$s% $e'ec ((#nica$i n e3#ip(en$s an! ( $ r vehic'e.

C4.) 9')+2,. 4? B+(-2(6 O7109.7+( O??23'.


T4)+, C4.) CR.. C*D

N4. 4? C47:,+2(). 9'+,)

C4.) :'* C47:,+2() CR.D

2003-04 2004-05 2005-06 2006-0" 200"-08

>.BE >.CB <B.<C =.F< <A.@B


>%D<E C%E<@ E%BD@ A%@EF A%C<<




The c ns#(er pr $ec$i n Ac$% <=FC is $he his$ r) 'e"is'a$i n in $he c #n$r). I$ is ne

+ s ci 1ec n (ic

+ $he ( s$ pr "ressive an!

c (prehensive piece + 'e"is'a$i ns enac$e! + r $he pr $ec$i n + c ns#(ers. I$ &as enac$e! a+$er in1!ep$h s$#!) + c ns#(er pr $ec$i n 'a&s in a n#(ber + c #n$ries an! in c ns#'$a$i n &i$h represen$a$ives + c ns#(ers% $ra!e an! in!#s$r) an! e,$ensive !isc#ssi ns &i$hin $he 4 vern(en$. The Ai( + C ns#(er Pr $ec$i n Ac$ (CPA) is $ a!!ress $he "rievances + $he c ns#(ers an! pr $ec$in" $he( +r ( $he #ne$hica' prac$ices? behavi r r #n+air $ra!e prac$ices + $he (an#+ac$#rer? s#pp'ier. A'' $he pr visi ns + $he Ac$ have c (e in$ + rce +r ( < 8#') <=F>. The Ac$ &as a(en!e! in <==< an! <==E. T (ake $he C ns#(er Pr $ec$i n Ac$ ( re +#nc$i na' an! p#rp se+#'% a c (prehensive a(en!(en$ &as carrie! #$ in Dece(ber ABBA an! br #"h$ in$ + rce +r ( <@ March ABBE. As a se3#e'% $he C ns#(er Pr $ec$i n R#'es% <=F> &ere a's a(en!e! an! n $i+ie! n @ March ABBD. Ear'ier $h #"h $here &ere severa' 'e"is'a$i ns $ pr $ec$ $he c ns#(er% b#$ $he sa(e never pr ve! a!e3#a$e $ pr $ec$ c ns#(er an! c (pensa$e $he( + r $heir c (p'iances. The ac$ n $ n') enhances $he a&areness an! e!#ca$e $he c ns#(er b#$ a's pr vi!e c (pensa$i n $ $he( b) s#((ar) an! r ine,pensive pr cee!in"s. /n'ike e,is$in" 'a&s &hich are p#ni$ive preven$ive in na$#re% $he pr visi ns + $his Ac$ are c (pensa$ r) in na$#re.

CONSUMER GC ns#(erH (eans an) pers n &h %1


B#) an) "

!s + r a c nsi!era$i n &hich has been pai! r pr (ise! r !s $her $han $he pers n &h b#)s s#ch

par$') pai! an! par$') pr (ise!% r #n!er an) s)s$e( + !e+erre! pa)(en$ an! inc'#!es an) #ser + s#ch " " !s + r c nsi!era$i n pai! r pr (ise! r par$') pai! r par$') pr (ise! r b$ains s#ch

#n!er an) s)s$e( + !e+erre! pa)(en$ &hen s#ch #se is (a!e &i$h $he appr va' + s#ch pers n% b#$ ! es n $ inc'#!e a pers n &h " !s + r resa'e r + r an) c ((ercia' p#rp se% r ;ires an) services + r a r #n!er an) s)s$e( + !e+erre! pa)(en$ an! inc'#!es an)

c nsi!era$i n &hich has been pai! r pr (ise! r par$') pai! an! par$') pr (ise!% bene+iciar) + s#ch services $her $han $he pers n &h hires $he services + r c nsi!era$i n pai! r pr (ise!% r par$') pai! an! par$') pr (ise!% r #n!er an) s)s$e( + !e+erre! pa)(en$% &hen s#ch services are avai'e! + &i$h $he appr va' + $he +irs$ (en$i ne! pers n. COMP$AINT GC (p'ain$H (eans an) a''e"a$i n in &ri$in" (a!e b) a c (p'ain$ $ha$: 1 As a res#'$ + an) #n+air $ra!e prac$ice a! p$e! b) an) $ra!er% $he c (p'ainan$ has s#++ere! ' ss r !a(a"e. The " !e+ec$s. The services (en$i ne! in $he c (p'ain$ s#++er +r ( !e+icienc) in an) respec$. A $ra!er has char"e! + r $he " !isp'a)e! n $he " $ !s (en$i ne! in $he c (p'ain$ a price in !s% &i$h a vie& !s (en$i ne! in $he c (p'ain$ s#++er +r ( ne r ( re

e,cess + $he price +i,e! b) r #n!er an) 'a& + r $he $i(e bein" in + rce r !s r an) packa"e c n$ainin" s#ch " b$ainin" an) re'ie+ pr vi!e! b) $his Ac$.

R'7'92'. G*+()'9 0(9'* )<' C4(.07'* P*4)'3)24( A3), 1986 +6+2(.) 0(?+2* T*+9' P*+3)23'.. The Dis$ric$ - r#( ? 0$a$e C ((issi n ? 6a$i na' C ((issi n (a) pass ne r ( re + $he + '' &in" r!ers $ "ran$ re'ie+ $ $he a""rieve! c ns#(er :1 <. $ re( ve $he !e+ec$s p in$e! #$ b) $he appr pria$e 'ab ra$ r) +r ( " A. !s in 3#es$i n* !s &i$h ne& " !s + si(i'ar !escrip$i n &hich

$ rep'ace $he "

sha'' be +ree +r ( an) !e+ec$* E. $ re$#rn $ $he c (p'ainan$ $he price% r% as $he case (a) be% $he char"es pai! b) $he c (p'ainan$* D. $ pa) s#ch a( #n$ as (a) be a&ar!e! b) i$ as c (pensa$i n $ $he c ns#(er + r an) ' ss r in7#r) s#++ere! b) $he c ns#(er !#e $ ne"'i"ence + $he pp si$e par$)* @. C. $ re( ve $he !e+ec$s r !e+iciencies in $he services in 3#es$i n* $ !isc n$in#e $he #n+air $ra!e prac$ice r $he res$ric$ive $ra!e

prac$ice r n $ $ repea$ $he(* >. F. =. n $$ ++er $he! #s " !s + r sa'e: !s +r ( bein" ++ere! + r sa'e !s an! $ !esis$ +r (

$ &i$h!ra& $he! #s "

$ cease (an#+ac$#re +! #s "

++erin" services &hich are! #s in na$#re*


R26<) )4 S+?')8 R26<) )4 1' H'+*9 R26<) )4 I(?4*7+)24(

R26<) )4 C<423'

R26<). 4?

R26<) )4 R'9*'..


R26<) )4 S+?' E(52*4(7'( ) R26<) )4 B+.23 N''9.

R26<) )4 C4(.07' * E903+)24 (

R26<) )4 S+?')8


The ri"h$ $ be pr $ec$e! a"ains$ $he (arke$in" + " p ssib'e c ns#(p$i n pa$$erns an! $ a'' "

!s an! services &hich

are! #s $ 'i+e an! pr per$) C ns#(er ri"h$ $ sa+e$) app'ies $ a'' !s an! services. In $he c n$e,$ + $he ne& (arke$ ec n () an! rapi! $echn ' "ica' a!vances a++ec$in" $he (arke$% $he ri"h$ $ sa+e$) has bec (e a pre1re3#isi$e 3#a'i$) in a'' pr !#c$s an! services. - r e.". s (e In!ian pr !#c$s carr) $he I0I (ark% &hich is a 6B s)(b ' + sa$is+ac$ r) 3#a'i$) + a pr !#c$M 0i(i'ar')% $he -PO an! A4MAR9 s)(b 'i.e s$an!ar! 3#a'i$) + + ! pr !#c$s.

R26<) )4 I(?4*7+)24( Ri"h$ $ in+ r(a$i n (eans $he ri"h$ $ be "iven $he +ac$s nee!e! $ (ake an in+ r(e! ch ice r !ecisi n ab #$ +ac$ rs 'ike 3#a'i$)% 3#an$i$)% p $enc)% p#ri$) s$an!ar!s an! price + pr !#c$ r service. The ri"h$ $ in+ r(a$i n n & " es be) n! av i!in" !ecep$i n an! pr $ec$i n a"ains$ (is'ea!in" a!ver$isin"% i(pr per 'abe'in" an! $her prac$ices. - r e.". &hen ) # b#) a pr !#c$ r #$i'i.e a service% ) # sh #'! be in+ r(e! ab #$* a) ; & $ c ns#(e a pr !#c$. b) The a!verse hea'$h e++ec$s + i$s c ns#(p$i n. c) 2he$her $he in"re!ien$s #se! are envir n(en$1 +rien!') r n $ e$c.

R26<) )4 R'9*'.. The ri"h$ $ seek re!ressa' a"ains$ #n+air $ra!e prac$ices r res$ric$ive $ra!e prac$ices r #nscr#p#' #s e,p' i$a$i n + c ns#(ers. I$ is $ pr $ec$ b$ain c ns#(er in$eres$s $ha$ c ns#(ers have been "iven $he ri"h$ $

re!ress. In In!ia% &e have a re!ress (achiner) ca''e! C ns#(er C #r$s


c ns$i$#$e! #n!er $he C ns#(er Pr $ec$i n Ac$ (<=FC)% +#nc$i nin" a$ na$i na' s$a$e an! !is$ric$ 'eve's. B#$ i$ has n $ been (a!e c (p'e$e #se + #n!er !#e $ 'ack + a&areness + basic c ns#(er ri"h$s a( n" c ns#(ers $he(se'ves. 2hi'e in $he !eve' pe! & r'!% ri"h$ $ re!ress is perhaps $he ( s$ c (( n') e,ercise! c ns#(er ri"h$% in !eve' pin" c #n$ries% c ns#(ers are s$i'' &ar) + "e$$in" inv 've! in 'e"a' re!ress s)s$e(.

R26<) )4 C4(.07'* E903+)24( C ns#(er e!#ca$i n e(p &ers c ns#(ers $ e,ercise $heir c ns#(er ri"h$s. I$ (eans $he ri"h$ $ ac3#ire $he kn &'e!"e an! ski'' $ be in+ r(e! c ns#(er $hr #"h #$ 'i+e. The ri"h$ $ c ns#(er e!#ca$i n inc rp ra$es $he ri"h$ $ $he kn &'e!"e an! ski''s nee!e! + r 'inkin" ac$i n an! in+'#ences +ac$ rs &hich a++ec$ c ns#(er !ecisi ns. I$ is $he sin"'e ( s$ p &er+#' $ $ha$ can $ake c ns#(ers +r ( $heir presen$ !isa!van$a"e #s p si$i n $ par$icipa$ r) an! is ( s$') ac3#ire! b) han!s1 n an! prac$ica' e,perience. ' ne

+ s$ren"$h in $he (arke$p'ace. C ns#(er e!#ca$i n is !)na(ic%

R26<) )4 B+.23 N''9. This ri"h$ is $he ri"h$ $ basic " !s an! services &hich "#aran$ee !i"ni+ie! + !%

'ivin". I$ inc'#!es a!e3#a$e + !% c' $hin"% hea'$h care% !rinkin" &a$er an! sani$a$i n% she'$er% e!#ca$i n% ener") an! $ransp r$a$i n. Access $ &a$er an! she'$er are $he basis +#n!a(en$a' a(eni$ies% 'i+e cann $ e,is$. + an) c ns#(erJs 'i+e. 2i$h #$ $hese

R26<) )4 S+?' E(52*4(7'()


I$ (eans $he ri"h$ $ a ph)sica' envir n(en$ $ha$ &i'' enhance $he 3#a'i$) + 'i+e. I$ inc'#!es pr $ec$i n a"ains$ envir n(en$a' !a(a"e. I$ ackn &'e!"es $he nee! $ pr $ec$ an! i(pr ve $he envir n(en$ + r +#$#re "enera$i ns as &e''. This ri"h$ inv 'ves pr $ec$i n a"ains$ envir n(en$a' pr b'e(s ver &hich $he in!ivi!#a' c ns#(er has c n$r '. I$ ackn &'e!"es $he nee! $ pr $ec$ an! i(pr ve $he envir n(en$ + r presen$ an! +#$#re "enera$i ns.

R26<) )4 C<423' The ri"h$ is $ be ass#re!% &herever p ssib'e% access $ a varie$) + pr !#c$s an! services a$ c (pe$i$ive prices. I$ (eans $he ri"h$ $ have access $ a varie$) + pr !#c$s an! services a$ c (pe$i$ive prices an! in $he case + ( n p 'ies% $ have an ass#rance + sa$is+ac$ r) 3#a'i$) an! service a$ a +air price. The ri"h$ $ ch " ch se has been re+ r(#'a$e! $ rea!: $he ri"h$ $ basic !s an! services. This is beca#se $he #nres$raine! ri"h$ + a (in ri$) $ se can (ean + r $he (a7 ri$) a !enia' + i$s +air share.

R26<) )4 1' H'+*9 This (eans $he ri"h$ $ be represen$e! s $ha$ c ns#(ers5 in$eres$s receive +#'' an! s)(pa$he$ic c nsi!era$i n in $he + r(#'a$i n an! e,ec#$i n ec n (ic p 'ic). +



The 0che(e is in$r !#ce! &i$h $he


+ enab'in" res '#$i n

c (p'ain$s re'a$in" $ cer$ain services ren!ere! b) banks an! $ +aci'i$a$e $he sa$is+ac$i n r se$$'e(en$ + s#ch c (p'ain$s. SHORT TIT$E, COMMENCEMENT, E&TENT AND

APP$ICATION 1D This 0che(e (a) be ca''e! $he Bankin" O(b#!s(an 0che(e% ABBC. 2D I$ sha'' c (e in$ + rce n s#ch !a$e as $he Reserve Bank (a) speci+). 3D I$ sha'' e,$en! $ $he &h 'e + In!ia. 4D The 0che(e sha'' app') $ $he b#siness in In!ia + a bank as !e+ine! #n!er $he 0che(e.

SUSPENSION O! THE SCHEME 1D The Reserve Bank% i+ i$ is sa$is+ie! $ha$ i$ is e,pe!ien$ s $ ! % (a) b) r!er s#spen! + r s#ch peri ! as (a) be speci+ie! in $he r!er% $he pera$i n + a'' r an) + $he pr visi ns + $he 0che(e% ei$her "enera'') r in re'a$i n $ an) speci+ie! bank. 2D The Reserve Bank (a)% b) r!er% e,$en! +r ( $i(e $ $i(e% $he peri ! + an) s#spensi n r!ere! as a+ resai! b) s#ch peri !% as i$ $hinks +i$.

DE!INITIONS 1D IA&ar!5 (eans an a&ar! passe! b) $he Bankin" O(b#!s(an in acc r!ance &i$h $he 0che(e.

2D IAppe''a$e A#$h ri$)5 (eans $he Dep#$) 4 vern r in char"e + $he Depar$(en$ + $he Reserve Bank i(p'e(en$in" $he 0che(e. 3D IA#$h ri.e! represen$a$ive5 (eans a pers n !#') app in$e! an! a#$h ri.e! b) a c (p'ainan$ $ ac$ n his beha'+ an! represen$ hi( in $he pr cee!in"s #n!er $he 0che(e be+ re a Bankin" O(b#!s(an + r c nsi!era$i n + his c (p'ain$. 4D IBankin" O(b#!s(an5 (eans an) pers n app in$e! #n!er C'a#se D + $he 0che(e. 5D IBank5 (eans a Ibankin" c (pan)5% a Ic rresp n!in" ne& bank5% a IRe"i na' R#ra' Bank5% I0$a$e Bank + In!ia5 a I0#bsi!iar) Bank5 as !e+ine! in 0ec$i n @ + $he Bankin" Re"#'a$i n Ac$% <=D= (Ac$ <B + <=D=)% r a IPri(ar) C 1 pera$ive Bank5 as !e+ine! in c'a#se (c) + 0ec$i n @C + $ha$ Ac$ an! inc'#!e! in $he 0ec n! 0che!#'e + $he Reserve Bank + In!ia Ac$% <=ED (Ac$ A + <=ED)% havin" a p'ace + b#siness in In!ia% &he$her s#ch bank is inc rp ra$e! in In!ia #$si!e In!ia. r

ESTAB$ISHMENT O! O!!ICE O! BANKING OMBUDSMAN APPOINTMENT # TENURE 1D The Reserve Bank (a) app in$ ne r ( re + i$s ++icers in $he rank + Chie+ 4enera' Mana"er r #n!er $he 0che(e. 2D The app in$(en$ + Bankin" O(b#!s(an #n!er $he ab ve C'a#se (a) be (a!e + r a peri ! n $ e,cee!in" $hree )ears a$ a $i(e.

r 4enera' Mana"er $

be kn &n as

Bankin" O(b#!s(en $ carr) #$ $he +#nc$i ns en$r#s$e! $ $he( b)

$OCATION O! O!!ICE AND TEMPORAR% HEADGUARTERS 1D The ++ice + $he Bankin" O(b#!s(an sha'' be ' ca$e! a$ s#ch p'aces as (a) be speci+ie! b) $he Reserve Bank. 2D In r!er $ e,pe!i$e !isp sa' + c (p'ain$s% $he Bankin" O(b#!s(an (a) h '! si$$in"s a$ s#ch p'aces &i$hin his area + 7#ris!ic$i n as (a) be c nsi!ere! necessar) an! pr per b) hi( in respec$ + a c (p'ain$ r re+erence be+ re hi(.

SECRETARIAT 1D The Reserve Bank sha'' !ep#$e s#ch n#(ber + i$s ++icers r $her s$a++ $ $he ++ice + $he Bankin" O(b#!s(an as is c nsi!ere! necessar) $ +#nc$i n as $he secre$aria$ + $he Bankin" O(b#!s(an. 2D The c s$ + $he 0ecre$aria$ sha'' be b rne b) $he Reserve Bank.





1D The Reserve Bank sha'' speci+) $he $erri$ ria' 'i(i$s $ &hich $he a#$h ri$) + each Bankin" O(b#!s(an app in$e! #n!er C'a#se D + $he 0che(e sha'' e,$en!. 2D The Bankin" O(b#!s(an sha'' receive an! c nsi!er c (p'ain$s re'a$in" $ $he !e+iciencies in bankin" r $her services +i'e! n $he "r #n!s (en$i ne! in c'a#se F an! +aci'i$a$e $heir sa$is+ac$i n se$$'e(en$ b) a"ree(en$ r r $hr #"h c nci'ia$i n an! (e!ia$i n

be$&een $he bank c ncerne! an! $he a""rieve! par$ies r b) passin" an A&ar! in acc r!ance &i$h $he 0che(e. 3D The Bankin" O(b#!s(an sha'' e,ercise "enera' p &ers + r $he c n!#c$ + b#siness $herea$. 4D The O++ice + $he Bankin" O(b#!s(an sha'' !ra& #p an ann#a' +

s#perin$en!ence an! c n$r ' ver his O++ice an! sha'' be resp nsib'e

b#!"e$ + r i$se'+ in c ns#'$a$i n &i$h Reserve Bank an! sha'' e,ercise $he p &ers + e,pen!i$#re &i$hin $he appr ve! b#!"e$ n $he 'ines + Reserve Bank + In!ia E,pen!i$#re R#'es% ABB@.


5D The Bankin" O(b#!s(an sha'' sen! $ $he 4 vern r% Reserve Bank% a rep r$% as n EB$h 8#ne ever) )ear% c n$ainin" a "enera' revie& + $he ac$ivi$ies + his O++ice !#rin" $he prece!in" +inancia' )ear an! sha'' +#rnish s#ch $her in+ r(a$i n as $he Reserve Bank (a) !irec$ an! $he Reserve Bank (a)% i+ i$ c nsi!ers necessar) in $he p#b'ic in$eres$ s $ ! % p#b'ish $he rep r$ an! $he in+ r(a$i n receive! +r ( $he Bankin" O(b#!s(an in s#ch c ns 'i!a$e! + r( r $her&ise as i$ !ee(s +i$.

PROCEDURE !OR !I$ING COMP$AINT 1D An) pers n &h has a "rievance a"ains$ a bank n an) ne r ( re + $he "r #n!s (en$i ne! in C'a#se F + $he 0che(e (a)% hi(se'+ r $hr #"h his a#$h ri.e! represen$a$ive ( $her $han an a!v ca$e)% (ake a c (p'ain$ $ $he Bankin" O(b#!s(an &i$hin &h se 7#ris!ic$i n $he branch r ++ice + $he bank c (p'aine! a"ains$ is ' ca$e!. EPr vi!e! $ha$ a c (p'ain$ arisin" #$ + $he pera$i ns + cre!i$ car!s an! $her $)pes + services &i$h cen$ra'i.e! pera$i ns% sha'' be +i'e! be+ re $he Bankin" O(b#!s(an &i$hin &h se $erri$ ria' 7#ris!ic$i n $he bi''in" a!!ress + $he c#s$ (er is ' ca$e!. 2D a) The c (p'ain$ in &ri$in" sha'' be !#') si"ne! b) $he c (p'ainan$ r his a#$h ri.e! represen$a$ive an! sha'' be% as +ar as p ssib'e% in $he + r( speci+ie! in Anne,#re IA5 r as near as $here$ as circ#(s$ances a!(i$% s$a$in" c'ear'):


The na(e an! $he a!!ress + $he c (p'ainan$%



The na(e an! a!!ress + $he branch r ++ice + $he bank a"ains$ &hich $he c (p'ain$ is (a!e%

iii. iv. v.

The +ac$s "ivin" rise $ $he c (p'ain$% The na$#re an! e,$en$ + $he ' ss ca#se! $ $he c (p'ainan$% an! The re'ie+ s #"h$ + r. b) The c (p'ainan$ sha'' +i'e a' n" &i$h $he c (p'ain$% c pies + $he ! c#(en$s% i+ an)% &hich he pr p ses $ + $his c'a#se. c) A c (p'ain$ (a!e $hr #"h e'ec$r nic (eans sha'' a's be accep$e! b) $he Bankin" O(b#!s(an an! a prin$ #$ + s#ch c (p'ain$ sha'' be $aken n $he rec r! + $he Bankin" O(b#!s(an. !) The Bankin" O(b#!s(an sha'' a's en$er$ain c (p'ain$s c vere! b) $his 0che(e receive! b) Cen$ra' 4 vern(en$ r Reserve Bank an! + r&ar!e! $ hi( + r !isp sa'. re') #p n an! a !ec'ara$i n $ha$ $he c (p'ain$ is (ain$ainab'e #n!er s#b1c'a#se (E)

3D 6 c (p'ain$ $ $he Bankin" O(b#!s(an sha'' 'ie #n'ess:1 a) The c (p'ainan$ ha!% be+ re (akin" a c (p'ain$ $ $he Bankin"

O(b#!s(an% (a!e a &ri$$en represen$a$i n $ $he bank an! $he bank ha! re7ec$e! $he c (p'ain$ r $he c (p'ainan$ ha! n $ receive! an) rep') &i$hin a peri ! $ hi( b) $he bank* + ne ( n$h a+$er $he bank receive! his represen$a$i n r $he c (p'ainan$ is n $ sa$is+ie! &i$h $he rep') "iven


b) The c (p'ain$ is (a!e n $ 'a$er $han ne )ear a+$er $he c (p'ainan$ has receive! $he rep') + $he bank $ his represen$a$i n r% &here n rep') is receive!% n $ 'a$er $han ne )ear an! ne ( n$h a+$er $he !a$e + $he represen$a$i n $ $he bank* c) The c (p'ain$ is n $ in respec$ + $he sa(e ca#se + ac$i n &hich &as se$$'e! r !ea'$ &i$h n (eri$s b) $he Bankin" O(b#!s(an in an) previ #s pr cee!in"s &he$her r n $ receive! +r ( $he sa(e c (p'ainan$ r a' n" &i$h ne r ( re c (p'ainan$s r ne r ( re + $he par$ies c ncerne! &i$h $he ca#se + ac$i n * !) The c (p'ain$ ! es n $ per$ain $ $he sa(e ca#se + ac$i n% + r &hich an) pr cee!in"s be+ re an) c #r$% $rib#na' r arbi$ra$ r r an) $her + r#( is pen!in" r a !ecree r A&ar! r r!er has been passe! b) an) s#ch c #r$% $rib#na'% arbi$ra$ r r + r#(* PO ER TO CA$$ !OR IN!ORMATION + carr)in" #$ his !#$ies #n!er $his 0che(e% a

1D - r $he p#rp se

Bankin" O(b#!s(an (a) re3#ire $he bank a"ains$ &h ( $he c (p'ain$ is (a!e r an) $her bank c ncerne! &i$h $he c (p'ain$ $ pr vi!e an) in+ r(a$i n r +#rnish cer$i+ie! c pies + an) ! c#(en$ re'a$in" $ $he c (p'ain$ &hich is r is a''e"e! $ be in i$s p ssessi n. Pr vi!e! $ha$ in $he even$ + $he +ai'#re + a bank $ c (p') &i$h $he re3#isi$i n &i$h #$ s#++icien$ ca#se% $he Bankin" O(b#!s(an (a)% i+ he !ee(s +i$% !ra& $he in+erence $ha$ $he in+ r(a$i n i+ pr vi!e! r c pies i+ +#rnishe! & #'! be #n+av rab'e $ $he bank. 2D The Bankin" O(b#!s(an sha'' (ain$ain c n+i!en$ia'i$) in+ r(a$i n r ! c#(en$ $ha$ (a) c (e in$ + an) r

his kn &'e!"e

p ssessi n in $he c #rse

+ !ischar"in" his !#$ies an! sha'' n $

!isc' se s#ch in+ r(a$i n r ! c#(en$ $ an) pers n e,cep$ &i$h $he c nsen$ + $he pers n +#rnishin" s#ch in+ r(a$i n r ! c#(en$. Pr vi!e! $ha$ n $hin" in $his c'a#se sha'' preven$ $he Bankin" O(b#!s(an +r ( !isc' sin" in+ r(a$i n r ! c#(en$ +#rnishe! b) a par$) in a c (p'ain$ $ $he $her par$) r par$ies $ $he e,$en$ c nsi!ere! b) hi( $ be reas nab') re3#ire! $ c (p') &i$h an) 'e"a' re3#ire(en$ r $he princip'es + na$#ra' 7#s$ice an! +air p'a) in $he pr cee!in"s.

SETT$EMENT O! COMP$AINT B% AGREEMENT 1D As s n as i$ (a) be prac$icab'e $ ! % $he Bankin" O(b#!s(an sha'' sen! a c p) + $he c (p'ain$ $ $he branch r ++ice + $he bank na(e! in $he c (p'ain$% #n!er a!vice $ $he n !a' ++icer re+erre! $ in s#b1c'a#se (E) + c'a#se <@% an! en!eav r $ pr ( $e a se$$'e(en$ + $he c (p'ain$ b) a"ree(en$ be$&een $he c (p'ainan$ an! $he bank $hr #"h c nci'ia$i n r (e!ia$i n. 2D - r $he p#rp se + pr ( $in" a se$$'e(en$ + $he c (p'ain$% $he

Bankin" O(b#!s(an (a) + '' & s#ch pr ce!#re as he (a) c nsi!er 7#s$ an! pr per an! he sha'' n $ be b #n! b) an) r#'es + evi!ence. 3D The pr cee!in"s be+ re $he Bankin" O(b#!s(an sha'' be s#((ar) in na$#re.



The Bankin" O(b#!s(an (a) re7ec$ a c (p'ain$ a$ an) s$a"e i+ i$ appears $ hi( $ha$ $he c (p'ain$ (a!e is* a) 6 $ n $he "r #n!s + c (p'ain$ re+erre! $ in c'a#se F r $her&ise n $ in acc r!ance &i$h s#b c'a#se (E) + c'a#se =* r b) Be) n! $he pec#niar) 7#ris!ic$i n + Bankin" O(b#!s(an prescribe! #n!er c'a#se <A (@) an! <A (C) r c) Re3#irin" c nsi!era$i n + e'ab ra$e ! c#(en$ar) an! ra' evi!ence an! $he pr cee!in"s be+ re $he Bankin" O(b#!s(an are n $ appr pria$e + r a!7#!ica$i n + s#ch c (p'ain$* r !) 2i$h #$ an) s#++icien$ ca#se* r e) Tha$ i$ is n $ p#rs#e! b) $he c (p'ainan$ &i$h reas nab'e !i'i"ence* r +) In $he pini n + $he Bankin" O(b#!s(an $here is n ' ss r !a(a"e r inc nvenience ca#se! $ $he c (p'ainan$.

APPEA$ BE!ORE THE APPE$$ATE AUTHORIT%= 1D An) pers n a""rieve! b) an A&ar! #n!er c'a#se <A r re7ec$i n + a c (p'ain$ + r $he reas ns re+erre! $ in s#b c'a#ses (!) $ (+) + c'a#se <E% (a) &i$hin EB !a)s + $he !a$e + receip$ + c ((#nica$i n + A&ar! r re7ec$i n + c (p'ain$% pre+er an appea' be+ re $he Appe''a$e A#$h ri$)H Pr vi!e! $ha$ in case + appea' b) a bank% $he peri ! + $hir$) !a)s + r +i'in" an appea' sha'' c ((ence +r ( $he !a$e n &hich $he bank receives 'e$$er + accep$ance + A&ar! b) c (p'ainan$ #n!er s#b. c'a#se (C) + c'a#se <A*


Pr vi!e! $ha$ $he Appe''a$e A#$h ri$) (a)% i+ he is sa$is+ie! $ha$ $he app'ican$ ha! s#++icien$ ca#se + r n $ (akin" $he appea' &i$hin $i(e% a'' & a +#r$her peri ! n $ e,cee!in" EB !a)s* Pr vi!e! +#r$her $ha$ appea' (a) be +i'e! b) a bank n') &i$h $he previ #s sanc$i n + $he Chair(an r% in his absence% $he Mana"in" Direc$ r r $he E,ec#$ive Direc$ r r $he Chie+ E,ec#$ive O++icer r an) $her ++icer + e3#a' rank.H 2D The Appe''a$e A#$h ri$) sha''% a+$er "ivin" $he par$ies a reas nab'e pp r$#ni$) + bein" hear! a) Dis(iss $he appea'* r b) A'' & $he appea' an! se$ asi!e $he A&ar!* r c) Re(an! $he (a$$er $ $he Bankin" O(b#!s(an + r +resh !isp sa' in acc r!ance &i$h s#ch !irec$i ns as $he Appe''a$e A#$h ri$) (a) c nsi!er necessar) r pr per* r !) M !i+) $he A&ar! an! pass s#ch !irec$i ns as (a) be necessar) $ "ive e++ec$ $ $he A&ar! s ( !i+ie!* r e) Pass an) $her r!er as i$ (a) !ee( +i$. 3D The r!er + $he Appe''a$e A#$h ri$) sha'' have $he sa(e e++ec$ as $he A&ar! passe! b) Bankin" O(b#!s(an #n!er c'a#se <A r $he r!er re7ec$in" $he c (p'ain$ #n!er c'a#se <E% as $he case (a) be.



The a!7#!ica$i n

+ pen!in" c (p'ain$s an! e,ec#$i n + rce

+ $he A&ar!s + $he

a'rea!) passe!% be+ re c (in" in$ 0che(e% ABBC% sha'' c n$in#e $ Bank iss#e! $here #n!er.

+ $he Bankin" O(b#!s(an

be " verne! b) $he pr visi ns

respec$ive Bankin" O(b#!s(an 0che(es an! ins$r#c$i ns + $he Reserve


SCHEME 1995, 2002 # 2006

The O(b#!s(an5s $ask is $ pr vi!e ci$i.ens &i$h a (eans + re!ress + r (a'a!(inis$ra$i n. B) per+ r(in" $his r 'e% $he O(b#!s(an he'ps% +irs$% $ re'ieve $he b#r!ens sec n!% $ + 'i$i"a$i n b) pr ( $in" +rien!') se$$'e(en$ an! + ci$i.enJs ri"h$s. The (akin" rec ((en!a$i ns $ av i! $he nee! + r pr cee!in"s in c #r$s* an! pr ( $e $he e++ec$ive i(p'e(en$a$i n O(b#!s(an is i(par$ia' an! has a c nci'ia$ r) appr ach. In In!ia% an) pers n &h se "rievances a"ains$ a bank are n $ res 've! $ his sa$is+ac$i n b) $ha$ bank &i$hin a peri ! + $& ( n$hs $hen he can appr ach $he Bankin" O(b#!s(an + r re!ressa'. This is h &ever s#b7ec$ $ $he


c (p'ain$ per$ainin" $ O(b#!s(an 0che(e.


+ $he (a$$ers speci+ie! in $he Bankin"

Reserve Bank + In!ia (RBI) &hich ass#(es $he r 'e si(i'ar $ $ha$ + 3#asi1 'e"a' (achiner) as i$ is es$ab'ishe! b) a c (pe$en$ a#$h ri$) $ pr vi!e + r an a!!i$i na' b#$ p$i na' 'e"a' re(e!) + r e++ec$ive% e,pe!i$i #s an! ine,pensive re!ressa' + c#s$ (er "rievances. T &ar!s e++ec$ive c (p'iance + $his p$i na' 'e"a' re(e!) i$ in$r !#ce! $he Bankin" O(b#!s(en 0che(e in <==@ an! " $ i$ +#r$her a(en!e! in ABBA an! in ABBC. The Reserve Bank + In!ia n $i+ie! $he revise! Bankin" O(b#!s(an e++ec$ +r ( 8an#ar) <% ABBC. The ne&

0che(e% ABBC &hich ca(e in$

sche(e &i!ens i$s sc pe $hereb) $ inc'#!e c#s$ (er c (p'ain$s n cer$ain areas 'ike cre!i$ car! c (p'ain$s% !e+iciencies in pr vi!in" $he pr (ise! services even b) banks5 sa'es a"en$s% 'ev)in" service char"es &i$h #$ pri r n $ice $ $he c#s$ (er an! n n1a!herence $ $he +air prac$ices c !e as pera$ive banks &h se a! p$e! b) $he in!ivi!#a' banks. I$ is (a!e app'icab'e $ a'' c ((ercia' banks% re"i na' r#ra' banks an! sche!#'e! pri(ar) c principa' p'ace + b#siness is in In!ia.

The Revise! 0che(e &i$h &e''1e3#ippe! s$a++ is &h '') +#n!e! b) $he Reserve Bank + In!ia. This ne& sche(e a'' &s $he c (p'ainan$s $ +i'e a c (p'ain$ in an) + r(% inc'#!in" n'ine an! $he bank c#s$ (ers are en$i$'e! $ +i'e an appea' &i$h $he Reserve Bank + In!ia. I$ pr vi!es a + r#( + r bank c#s$ (ers + r re!ressa' + $heir c (( n c (p'ain$s a"ains$ banks. On $he basis + $he ne& Bankin" O(b#!s(an 0che(e% ABBC $he c#s$ (ers are a's privi'e"e! $ c (p'ain ab #$ n n1pa)(en$ r an) in r!ina$e !e'a) in pa)(en$s r c ''ec$i n + che3#es $ &ar!s bi''s r re(i$$ances b) banks% as

a's n n accep$ance + s(a'' !en (ina$i n n $es an! c ins r char"in" + c ((issi n + r accep$ance + s(a'' !en (ina$i n n $es an! c ins b) banks. The Bankin" O(b#!s(en c#rren$') have $heir ++ices in <@ cen$ers c verin" $he en$ire c #n$r).

I. )<' N'B B+(-2(6 O7109.7+( S3<'7' 2006 92??'*. ?*47 2). :*'5240. .3<'7'.I The visi n behin! $he e(er"ence + Bankin" Ins$i$#$i n is $ ev 've in$ a s$r n"% s #n! an! "' ba'') c (pe$i$ive +inancia' s)s$e(% pr vi!in" in$e"ra$e! services $ c#s$ (ers +r ( a'' se"(en$s% 'evera"in" n $echn ' ") an! h#(an res #rces% a! p$in" $he bes$ acc #n$in" an! e$hica' prac$ices an! +#'+i''in" c rp ra$e an! s cia' resp nsibi'i$ies $ &ar!s a'' s$akeh '!ers. As a par$ + $his visi n% $he RBI ' !"e! vari #s O(b#!s(an sche(es $i'' $ !a) &hich + r(s a par$ + #r !isc#ssi n. Yes% $he ne& sche(e ABBC !i++ers +r ( i$s previ #s sche(es. The e,$en$ an! sc pe + $he sche(e% ABBC is (#ch &i!er $han i$s ear'ier sche(es + <==@ an! ABBA. Beca#se $he ne& sche(e in$r !#ces + r $he +irs$ $i(e*

Inc'#!es c (p'ain$s re'a$in" $ cre!i$ car!s% !e+iciencies in pr vi!in" $he pr (ise! services b) banks an! i$s (arke$in" a"en$s% 'ev)in" + service char"es &i$h #$ pri r n $ice $ $he c#s$ (ers an! n n1 c (p'iance + +air prac$ice c !es b) $he banks* -aci'i$a$es $he s#b(issi n + c (p'ain$s $hr #"h n'ine* Es$ab'ishes an appe''a$e a#$h ri$) $ +aci'i$a$e appea's a"ains$ $he

a&ar!s ren!ere! b) $he Bankin" O(b#!s(en ins$ea! + +i'in" &i$h $he Revie& A#$h ri$) + r revie& + s#ch a&ar!s.

In e,ercise

+ $he p &ers c n+erre! b) 0ec$i n E@A

+ $he Bankin"

Re"#'a$i n Ac$% <=D= an! in par$ia' ( !i+ica$i n + i$s 6 $i+ica$i n !a$e! Dece(ber AC% ABB@% Reserve Bank + In!ia hereb) a(en!s $he Bankin" O(b#!s(an 0che(e ABBC $ $he e,$en$ speci+ie! in $he Anne, here$ . The Reserve Bank hereb) !irec$s $ha$ a'' c ((ercia' banks% re"i na' r#ra' banks an! sche!#'e! pri(ar) c 1 pera$ive banks sha'' c (p') &i$h $he Bankin" O(b#!s(an 0che(e% ABBC as a(en!e! hereb). The a(en!(en$s in $he 0che(e sha'' c (e in$ + rce +r ( 8an#ar) <% ABBC.

AMENDMENT PASSED B% RBI !OR THE CHANGES IN BANKING OMBUDSMAN SCHEME, 2006= A7'(97'() 1= RBI '>:+(9. S34:' 4? B+(-2(6 O7109.7+( S3<'7'H I(3,09'. !+2* B+(-2(6 P*+3)23'.. D+)'= AC Dec ABB@

The Reserve Bank

+ In!ia $ !a) ann #nce! $he revise! Bankin"

O(b#!s(an 0che(e &i$h en'ar"e! sc pe $ inc'#!e c#s$ (er c (p'ain$s n cer$ain ne& areas% s#ch as% cre!i$ car! c (p'ain$s% !e+iciencies in pr vi!in" $he pr (ise! services even b) banksJ sa'es a"en$s% 'ev)in" service char"es &i$h #$ pri r n $ice $ $he c#s$ (er an! n n a!herence $ $he +air prac$ices c !e as a! p$e! b) in!ivi!#a' banks. App'icab'e $ a'' c ((ercia' banks% re"i na' r#ra' banks an! sche!#'e! pri(ar) c ABBC. In r!er $ increase i$s e++ec$iveness% $he revise! Bankin" O(b#!s(an pera$ive banks havin" b#siness in In!ia% $he revise! sche(e &i'' c (e in$ e++ec$ +r ( 8an#ar) <%

0che(e &i'' be +#'') s$a++e! an! +#n!e! b) $he Reserve Bank ins$ea! + $he banks. /n!er $he revise! Bankin" O(b#!s(an 0che(e% $he c (p'ainan$s &i'' be ab'e $ +i'e $heir c (p'ain$s in an) + r(% inc'#!in" n'ine. The bank c#s$ (ers & #'! a's be ab'e $ appea' $ $he Reserve Bank a"ains$ $he a&ar!s "iven b) $he Bankin" O(b#!s(en. The ne& sche(e pr vi!es a + r#( $ bank c#s$ (ers $ seek re!ressa' + $heir ( s$ c (( n c (p'ain$s a"ains$ banks% inc'#!in" $h se re'a$in" $ cre!i$ car!s% service char"es% pr (ises "iven b) $he sa'es a"en$s + banks% b#$ n $ kep$ b) banks% as a's % !e'a)s in !e'iver) + bank services. The bank c#s$ (ers & #'! n & be ab'e $ in r!ina$e !e'a) in pa)(en$s c (p'ain ab #$ n n1pa)(en$ r an) r r c ''ec$i n + che3#es $ &ar!s bi''s

re(i$$ances b) banks% as a's n n1accep$ance + s(a'' !en (ina$i n n $es an! c ins r char"in" + c ((issi n + r accep$ance + s(a'' !en (ina$i n n $es an! c ins b) banks. The Reserve Bank ha! +irs$ in$r !#ce! $he Bankin" O(b#!s(an 0che(e in <==@ $ pr vi!e e,pe!i$i #s an! ine,pensive + r#( $ bank c#s$ (ers + r

res '#$i n + $heir c (p'ain$s re'a$in" $ !e+icienc) in bankin" services. The 0che(e &as revise! in ABBA (ain') $ c ver Re"i na' R#ra' Banks an! $ per(i$ revie& + $he Bankin" O(b#!s(en5s a&ar!s a"ains$ banks b) $he Reserve Bank. The Bankin" O(b#!s(en c#rren$') have $heir ++ices in <@ cen$ers. The Reserve Bank is a's in an a!vance! s$a"e + se$$in" #p an in!epen!en$ Bankin" C !es an! 0$an!ar!s B ar! + In!ia $ ens#re $ha$ c (prehensive c !e + c n!#c$ + r +air $rea$(en$ $ c#s$ (ers are + r(#'a$e! b) banks an! a!here! $ . The Reserve Bank + In!ia ha! ann #nce! se$$in" #p + $he B ar! in i$s Ann#a' P 'ic) + r ABB@1ABBC ann #nce! b) $he 4 vern r% Dr Y : Re!!) in Apri' ABB@.

A7'(97'() 2= C0.)47'*. 3+( (4B +::'+, +6+2(.) )<' B+(-2(6 O7109.7+(J. D'32.24( . D+)'= AD Ma) ABB> Bank c#s$ (ers can n & appea' a"ains$ $he !ecisi n + $he Bankin"

O(b#!s(an &here he has re7ec$e! $he c#s$ (erJs c (p'ain$ re'a$in" $ (a$$ers +a''in" &i$hin $he "r #n!s + c (p'ain$s speci+ie! #n!er $he sche(e. The Reserve Bank + In!ia has a(en!e! $he Bankin" O(b#!s(an 0che(e% ABBC $ enab'e $he c#s$ (ers $ appea' a"ains$ $he Bankin" O(b#!s(anJs !ecisi n. The a(en!(en$s are avai'ab'e n $he RBI &ebsi$e. Be+ re $he sche(e &as a(en!e!% $he bank c#s$ (ers c #'! appea' n') a"ains$ $he a&ar!s "iven b) $he Bankin" O(b#!s(an. The appe''a$e a#$h ri$) + r $he Bankin" O(b#!s(an 0che(e is $he Dep#$) 4 vern r + Reserve Bank + In!ia.

I$ (a) be reca''e! $ha$ in $he Ann#a' P 'ic) + r ABB>1ABBF% $he Reserve Bank ha! ann #nce! $ha$ base! n c#s$ (er +ee!back% i$ & #'! a(en! $he Bankin" O(b#!s(an 0che(e% ABBC $ e,$en! $he appea' p$i n a's $ $he !ecisi ns + $he Bankin" O(b#!s(an. Ori"ina'') in$r !#ce! in <==@% $he Bankin" O(b#!s(an 0che(e enab'es spee!) an! c s$ e++ec$ive res '#$i n re'a$in" $ + c (p'ain$s + bank c#s$ (ers !e+icienc) in bank services. The 0che(e n & c vers a''

0che!#'e! C ((ercia' Banks% Re"i na' R#ra' Banks an! 0che!#'e! Pri(ar) C 1 pera$ive Banks. The c#s$ (ers can a's n & c (p'ain $ $he Bankin" O(b#!s(an a"ains$ !e+icienc) in a'( s$ an) bankin" services% inc'#!in" cre!i$ car!s% a+$er e,ha#s$in" $he channe' avai'ab'e &i$h $he bank c ncerne! + r res 'vin" $heir c (p'ain$s. The Reserve Bank has app in$e! <@ Bankin" O(b#!s(en &h are ' ca$e! ( s$') in 0$a$e Capi$a's #n!er $he 0che(e. The Bankin" O(b#!s(an $ries $ res 've $he c (p'ain$ $hr #"h c nci'ia$i n r (e!ia$i n an! even passes an a&ar! i+ i$ is n $ res 've! $hr #"h s#ch se$$'e(en$.




SUBJECT= R'?0.+, )4 C,4.' )<' A3340() The c (p'ainan$% Mr.NYO &as h '!in" a c#rren$ acc #n$ &i$h ABC Bank. On <<.B=.<==B% + '' &in" a rai! c n!#c$e! n his pre(ises b) $he Inc (e Ta, Dep$.% 7e&e''er)% -DRs% che3#eb ks% passb ks per$ainin" $ his bank acc #n$s &i$h vari #s banks inc'#!in" $ha$ &i$h ABC Bank &ere sei.e!. The cre!i$ ba'ance in his c#rren$ acc #n$ &i$h ABC Bank a$ $he $i(e + sei.#re + $he ! c#(en$s &as Rs.DD%>C=.<B. ;e s$a$e! $ha$ i$ ha! $aken $hir$een )ears + r $he Inc (e Ta, Dep$. $ +ina'i.e his case an! $ e, nera$e hi(. The

Inc (e Ta, Dep$. !i! n $ $ re$#rn $he che3#eb

k an! passb

k sei.e! b)

$he(% as $he) &ere n $ $raceab'e. The Inc (e Ta, Dep$. b) i$s 'e$$er 6 . 4IR 6 .:1 ><@ !a$e! <<.B=.ABBE a!!resse! $ ABC Bank cer$i+ie! $ha$ !#rin" search pera$i ns c n!#c$e! in $he pre(ises + Mr.NYO n + <<.B=.<==B% $he !epar$(en$ ha! sei.e! a che3#eb acc #n$ 6 .=A= in $he na(e passb k in respec$ + c#rren$ k an!

+ Mr.NYO sh &in" a cre!i$ ba'ance

Rs.DD%CD>.<B as n $he !a$e + sei.#re a!!in" $ha$ $he che3#eb k &ere n $ rea!i') $raceab'e an! $he !epar$(en$ ha! n a'' &in" pera$i ns in $he acc #n$ b) $he c (p'ainan$.

b7ec$i n in

DECISION 2hen $he c (p'ainan$ ha! appr ache! $he bank n <A.B=.ABBE + r re+#n! + $he a( #n$ ')in" $ his cre!i$% $he bank ha! re+#se! $ a'' & hi( $ &i$h!ra& $he a( #n$. Ar$ic'e =B + $he Li(i$a$i n Ac$ c'ear') (en$i ns $ha$ 'i(i$a$i n & #'! s$ar$ r#nnin" +r ( $he !a$e + !e(an!. The c (p'ain$ +i'e! &i$h $he ++ice + $he Bankin" O(b#!s(an is n $ barre! b) 'i(i$a$i n an! is (ain$ainab'e in 'a&. I$ is a "enera' r#'e $ha$ $he par$) &h a++ir(s an) pr p si$i n sha'' pr ve i$. I$ is a's a "enera' r#'e $ha$ $he n#s 'ies #p n $he par$) &h seeks $ s#pp r$ his case b) a par$ic#'ar +ac$ $ pr ve i$. I+ $his basic princip'e + 'a& + evi!ence is app'ie!% i$ is + r $he bank $ pr ve c nc'#sive') as $ &hen an! h & $he acc #n$ &as c' se! an! $ pr !#ce $he ! c#(en$s s#pp r$in" s#ch pa)(en$ an! c' s#re% &hich #"h$ $ have been in i$s c#s$ !). I$ (a) a's be per$inen$ $ n $e $ha$ $he Ass$. Direc$ r +

Inc (e Ta, PInv.Q ha! serve! an r!er #n!er 0ec.<EA PEQ + $he Inc (e Ta, n $he branch (ana"er !irec$in" hi( n $ $ par$ &i$h $he +#n!s ')in" $ $he cre!i$ + $he c (p'ainan$ in c#rren$ acc #n$ 6 .=A=. 2hen $he bank asser$s $ha$ $he acc #n$ &as c' se! i$ is + r $he bank $ brin" pr + + s#ch c' s#re an! i$ cann $ e,c#se i$se'+ s$a$in" $ha$ rec r!s &ere !es$r )e! r i$s $apes &ere n $ rea!ab'e. The s#b(issi n $ha$ $he bank ha! per(i$$e! c' s#re &hen $here &as pr hibi$ r) r!er a"ains$ i$ is n $ cre!ib'e as in $he n r(a' c #rse $here is n chance + an) bank a'' &in" pera$i ns in an acc #n$ &hen $here is a pr hibi$ r) r!er in + rce. There+ re i$ &as !eci!e! $ !irec$ $he bank $ha$ i$ sh #'! re+#n! $ $he c (p'ainan$ Rs.DD%CD>.<B &hich &as ')in" $ his cre!i$ as n <<.B=.<==B &hen $he passb Inc (e Ta, a#$h ri$ies. k an! che3#eb k &ere sei.e! b)

ANA$%SIS O! THE CASE This case is ab #$ a c#s$ (er Mr.NYO% &h is a c#rren$ acc #n$ h '!er &i$h $he ABC Bank. Mr.NYO &as havin" a ba'ance + Rs.DD%CD>?1 in his c#rren$ acc #n$ &hen $he inc (e $a, !epar$(en$ c n!#c$e! a rai! in his pre(ises. 2hi'e $he inves$i"a$i ns $he inc (e $a, !epar$(en$ c n+isca$e! his passb k% che3#eb k% -DR5s an! $her ! c#(en$ + a'' $he banks inc'#!in" $he ABC Bank. A+$er $hir$een )ears $he inc (e $a, !epar$(en$ &as n $ ab'e $ $race his ! c#(en$s. 0 he !eci!e! $ &i$h!ra& his ba'ance a( #n$ an! c' se $he acc #n$% b#$ $he $he bank re+#se! $ c' se $he acc #n$ &i$h #$ $he che3#e b k an! $he passb k.


Mr.NYO &as ab'e $ pr ve his s$a$e(en$ b) pr vi!in" $he 'e$$er +r ( $he inc (e $a, !epar$(en$ (en$i nin" $ha$ Mr.NYO5s passb ba'ance + k havin" a Rs. DD%CD>?1 as n <<.B=.<==B &as (isp'ace! b) $he(. The

bank re+#se! $ re+#n! + $he a( #n$ ')in" $ his cre!i$ even a+$er sh &in" $he evi!ence $ $he(. There+ re $he c#s$ (er appr ache! $he Bankin" O(b#!s(an $ c (p'ain$ $he i"n rance + $he bank an! $ "e$ his acc #n$ c' se!. As s n as $he c (p'ain$ &as ' !"e! $ $he Bankin" O(b#!s(an he + #n!e! $ha$ $he $he Bankin" k. evi!ence pr vi!e! b) $he c (p'ainan$ &as $r#e. 0

O(b#!s(an !irec$e! $he bank $ re+#n! $he c (p'ainan$ $he a( #n$ + Rs. DD%DC>?1 $ha$ &as ')in" $ his cre!i$ since <<.B=.<==B as per $he passb






C47:,+2() N4. KKK4? 8'+*.K D+)' KKKKKKKK..

CTO BE !I$$ED UP B% THE COMP$AINANTD T The Bankin" O(b#!s(an (RTerri$ ria' 7#ris!ic$i n% P'ace + BO5s ++iceSS)

Dear 0ir%

0#b: C (p'ain$ a"ains$ SSSSSSSS. (6a(e + $he bank5s branch) + SSSSSSSSSSSSSSSSSSSSSSSSSSSSSS S (6a(e + $he Bank) Bein" a""rieve! $he c (p'ainan$ na(e! herein has s#b(i$$e! a c (p'ain$ &i$h $he ab ve re+erre! bank. De$ai's + $he c (p'ain$ are as #n!er: <. 6AME OT;E COMPLAI6A6T SSSSSSSSSSSSSSSS...S A. -/LL ADDRE00 O- T;E COMPLAI6A6T SSSSSSSS SSSSSSSSSSSSSSSSSSSSSSSSSSSSSS SSS PI6 CODE SSSSSS.. SSSSSSSS..S P;O6E 6O. ? -AN 6O.


E. COMPLAI6T A4AI60T (6AME A6D -/LL ADDRE00 O- T;E BRA6C;? BA69) SSSSSSSSSSSSSSSSSSSSSSSSS PI6 CODE SSSSSSSS. SSSSS. D. PARTIC/LAR0 O- BA69 ACCO/6T (P'ease s$a$e na$#re + acc #n$ vi.. 0avin"s bank?c#rren$?cash cre!i$?$er( !ep si$?' an acc #n$ e$c. re'a$e! $ $he s#b7ec$ (a$$er + $he c (p'ain$ bein" (a!e) SSSSSSSSSSSSSSSSSSSSSSSSSSSSSS @. (a) DATE O- REPRE0E6TATIO6 BY T;E COMPLAI6A6T TO T;E BA69 SSSSSSSSS. (P'ease enc' se $hree c pies + $he represen$a$i n) (b) 2he$her an) re(in!er &as sen$ b) $he c (p'ainan$M YE0 ?6O (I+ )es% p'ease enc' se $hree c pies + $he re(in!er) C. 0/B8ECT MATTER O- T;E COMPLAI6T (P'ease re+er $ C'a#se F + $he 0che(e) SSSSSSSSSSSSSSSSSSSSSSSSSSSSS. SSSSSSSSSSSSSSSSSSSSSSSSSSSSSS SSS >. DETAIL0 O- T;E COMPLAI6T (I+ space is n $ s#++icien$ P'ease enc' se separa$e shee$) SSSSSSSSSSSSSSSSSSSSSSSSSSSSSS SSS SSSSSSSSSSSSSSSSSSSSSSSSSSSSSS SSS P;O6E 6O. ? -AN 6O.SS.S.


F. (a) 2he$her an) rep') (2i$hin a peri ! + ne ( n$h a+$er $he bank c ncerne! receive! $he represen$a$i n) has been receive!M YE0 ? 6O (I+ )es% p'ease enc' se I$hree c pies5 + $he bank5s rep')) (b) 2he$her $he represen$a$i n has been re7ec$e!M YE0? 6O (I+ )es% p'ease enc' se I$hree c pies5 + $he bank5s 'e$$er) (c) 2he$her $he c (p'ainan$ has receive! an) $her +ina' !ecisi n + $he bankM !ecisi n) =. 6AT/RE ORELIE0O/4;T -ROM T;E BA69I64 OMB/D0MA6 SSSSSSSSSSSSSSSSSSSSSSSSSSSSSS SSS (P'ease enc' se I$hree c pies5 + ! c#(en$ar) pr ) #r c'ai() <B. 6AT/RE A6D ENTE6T O- MO6ETARY LO00% I- A6Y% CLAIMED BY T;E COMPLAI6A6T BY 2AY O- COMPE60ATIO6 Rs. S... SSSSSS. (P'ease enc' se ! c#(en$ar) pr $he bank) +% i+ an)% $ sh & $ha$ s#ch ' ss is ac$#a' ' ss ca#se! as a !irec$ c nse3#ence + a''e"e! (issi n r c ((issi n + +% i+ an)% in s#pp r$ + YE0? 6O (I+ )es% p'ease enc' se I$hree c pies5 + $he bank5s 'e$$er c nve)in" i$s +ina'


<<. LI0T O- DOC/ME6T0 E6CLO0ED (P'ease enc' se I$hree c pies5 + a'' $he ! c#(en$s) SSSS.SSSSSSSSSSSSSS. SSSSSSSSS.. SSSSSSSSSSSSSSSSSSSSSSSSSSSSSS SSS <A. DECLARATIO6 <. I? 2e% $he c (p'ainan$?s herein !ec'are $ha$: (a) The in+ r(a$i n +#rnishe! herein ab ve is $r#e an! c rrec$* an! (b) I? 2e have n $ c ncea'e! r (isrepresen$e! an) +ac$ s$a$e! in a+ resai! c '#(ns an! $he ! c#(en$s s#b(i$$e! here&i$h. A. The c (p'ain$ is +i'e! be+ re e,pir) + peri ! + ne )ear reck ne! in acc r!ance &i$h $he pr visi ns + C'a#se =(E) (a) an! (b) + $he 0che(e. A= E. (a) The s#b7ec$ (a$$er + $he presen$ c (p'ain$ has never been br #"h$ be+ re $he O++ice + $he Bankin" O(b#!s(an b) (e? r b) an) ne + #s r b) an) + $he par$ies c ncerne! &i$h $he s#b7ec$ (a$$er $ $he bes$ + ()? #r kn &'e!"e. (b) The s#b7ec$ (a$$er + $he presen$ c (p'ain$ is n $ in respec$ + $he sa(e &hich &as se$$'e! $hr #"h $he O++ice + $he Bankin" O(b#!s(an in an) previ #s pr cee!in"s. (c) The s#b7ec$ (a$$er + $he presen$ c (p'ain$ has n $ been !eci!e! b) an) + r#(?c #r$?arbi$ra$ r. D. I?2e a#$h ri.e $he bank $ !isc' se an) s#ch in+ r(a$i n? ! c#(en$s +#rnishe! b) #s $ $he Bankin" O(b#!s(an an! !isc' s#re &here + in $he pini n + $he Bankin" O(b#!s(an is necessar) an! is re3#ire! + r re!ressa' + an) $her c (p'ain$ r #r c (p'ain$. @. I?2e have n $e! $he c n$en$s + $he Bankin" O(b#!s(an 0che(e% ABBC. Y #rs +ai$h+#'')%

(0i"na$#re + C (p'ainan$) NOMINATION T (I+ $he c (p'ainan$ &an$s $ n (ina$e his represen$a$ive $ appear an! (ake s#b(issi ns n his beha'+ be+ re $he Bankin" O(b#!s(an r $ $he O++ice + $he Bankin" O(b#!s(an% $he + '' &in" !ec'ara$i n sh #'! be s#b(i$$e!.) EB I?2e $he ab ve na(e! c (p'ainan$?s hereb) n (ina$e 0hri?0($SSSSSSSSSSSSSS&h is n $ an A!v ca$e an! &h se a!!ress is as SSSSSSSSSSSSSSSSSSSSSSSSSSSSS ()? #r REPRE0E6TATI:E in a'' pr cee!in"s

+ $his c (p'ain$ an!

c n+ir( $ha$ an) s$a$e(en$% accep$ance r re7ec$i n (a!e b) hi(?her sha'' be bin!in" n (e?#s. ;e?0he has si"ne! be' & in () presence.

ACCEPTED (0i"na$#re + Represen$a$ive) (0i"na$#re + C (p'ainan$)



Th #"h $he Bankin" O(b#!s(an 0che(e &as in$r !#ce! in $he )ear <==@% &i$h a vie& $ ! a&a) &i$h $he bankin" c#s$ (er c (p'ain$s% $he sche(e &as a(en!e! in s#bse3#en$ )ears + ABBA an! ABBC. B#$ $he banks ! n $ see( $ have a! p$e! $he n r(s + r $heir e++icien$ +#nc$i nin"% $ha$ is $he reas n behin! $he increasin" c ns#(er cases a"ains$ $he banks% &hich are " verne! #n!er $he sche(e. In $he s)s$e( + Bankin" O(b#!s(an% $he res#'$s are !e'ivere! ver) s n% $he pr ce!#res are +air $ "e$her &i$h c s$% an! pr p r$i na$e $ $he na$#re + $he iss#es inv 've!. The s)s$e( !ea's &i$h cases a$ reas nab'e spee!% is #n!ers$an!ab'e $ $h se &h #se i$% is resp nsive $ $he nee!s + $h se &h #se i$% an! pr vi!es as (#ch cer$ain$) as $he na$#re + par$ic#'ar cases a'' &s. This is $r#e beca#se ver $he pas$ +ive )ears near') ECBBB c (p'ain$s are bein" res 've! b) $he Bankin" O(b#!s(an #n!er $his Bankin" O(b#!s(an 0che(e. The reas n is $he) are &e'' p p#'ar a( n" $he c (( n p#b'ic &hich is 'ackin" &i$h $he bankin" (b#!s(an an! i$s & rkin". De+ini$e') $he 0che(e nee!s p p#'ari$) in $he s cie$) + r i$s ( re appr pria$eness an! e++ec$iveness s $ha$ $he a""rieve! bank c#s$ (er &i$h $he services ( re !#$ies + $he bank pre+ers $ n $he bankin" kn ck $he ! r + $he bankin" (b#!s(an + r re!ressa'. The sche(e sh #'! pr vi!e ( re p &ers an! 'ev) (b#!s(an s $ha$ $he) can easi') be appr achab'e b) $he a""rieve! bank c#s$ (er


Ann#a' Rep r$ b) $he Reserve Bank + In!ia T Bankin" O(b#!s(an

0che(e ABB>1ABBF.

B k'e$ + GThe Bankin" O(b#!s(an 0che(e ABBCH. RBI 8 #rna's.


h$$p:??&&&.rbi. r".in?0crip$s?bsUvie&c n$en$.asp,MI!V<@= h$$p:??&&&.rbi. r".in?0crip$s?P#b'ica$i ns:ie&.asp,Mi!V<<<<EWA h$$p:??&&&.n s. r"?0ecb#sc #r?A@.p!+ h$$p:??&&&.in!bank.c (? (b#!s(an.h$( h$$p:??&&&.#c bank.c (? (b#!s(an.h$(