Banking Ombudsman Scheme

What is the Banking Ombudsman Scheme?

• The Banking Ombudsman Scheme is an expeditious
and inexpensive forum for bank customers for
resolution of complaints relating to certain services
rendered by banks. The Banking Ombudsman
Scheme is introduced under Section 35 A of the
Banking Regulation Act, 1949 by RBI with effect from
1995. Presently the Banking Ombudsman scheme
2006 ( as amended up to July 1, 2017 ) is in
operation.
Who is a Banking Ombudsman?
• The Banking Ombudsman is a senior official
appointed by the Reserve Bank of India to redress
customer complaints against deficiency in certain
banking services covered under the grounds of
complaint specified under Clause 8 of the
Banking Ombudsman Scheme 2006 (As amended
up to July 1, 2017).
Some of the grounds of complaints
• non-payment or inordinate delay in the payment or
collection of cheques, drafts, bills etc.;
• non-acceptance, without sufficient cause, of small
denomination notes tendered for any purpose, and for
charging of commission in respect thereof;
• non-payment or delay in payment of inward
remittances ;
• failure to issue or delay in issue of drafts, pay orders or
bankers’ cheques;
• non-adherence to prescribed working hours ;
When can one file a complaint?
• One can file a complaint before the Banking
Ombudsman if the reply is not received from the
bank within a period of one month after the bank
concerned has received one's complaint, or the
bank rejects the complaint, or if the complainant
is not satisfied with the reply given by the bank.
Can the Banking Ombudsman reject a complaint
at any stage?
Yes. The Banking Ombudsman may reject a
complaint at any stage if it appears to him that a
complaint made to him is:
• not on the grounds of complaint referred to
above
• the complaint is without any sufficient cause
• compensation sought from the Banking
Ombudsman is beyond ₹ 20 lakh.
• requires consideration of elaborate documentary
and oral evidence and the proceedings before the
Banking Ombudsman are not appropriate for
adjudication of such complaint
• the complaint that it is not pursued by the
complainant with reasonable diligence
What happens if the complaint is not settled by
agreement?
• If a complaint is not settled by an agreement
within a period of one month, the Banking
Ombudsman proceeds further to pass an Award.
Before passing an award, the Banking Ombudsman
provides reasonable opportunity to the
complainant and the bank, to present their case.
• It is up to the complainant to accept the award in
full and final settlement of or to reject it.
 MCQs
1. Under which section of Banking Regulation Act, 1949, is Banking Ombudsman
Scheme introduced ?
a. Section 34 A
b. Section 35 A
c. Section 36 A
d. Section 37 A
Answer: b option
2. Presently which Banking Ombudsman Scheme is in operation ?
e. 2006
f. 2007
g. 2008
h. 2009
Answer: a option
3. Which among the following organizations released the Ombudsman Scheme?
a. NABARD
b. SEBI
c. RBI
d. DICGC
Answer: c option
4. The maximum compensation which a Banking Ombudsman can help a complaint
to get is
e. 10 lakh
f. 20 lakh
g. 1 lakh
h. 5 lakh
Answer: b option
5. Which of the following banks are covered under the Banking Ombudsman
Scheme, 2006?
a. Scheduled commercial bank
b. Regional rural bank
c. Scheduled primary co-operative banks
d. All of above
Answer: d option
6. Which of the following option correct regarding Banking Ombudsman?
a. It is specified under clause 8 of the Banking Ombudsman Scheme 2006
b. This scheme was adopted by RBI with effect from 1995
c. 22 Banking Ombudsman have been appointed as at current
d. All of above
Answer: d option
7. Total how many Banking Ombudsman center are there in India? (April 2020)
a. 20
b. 16
c. 21
d. 22
Answer: d option
8. Can the Banking Ombudsman reject a complaint at any stage?
e. Yes
f. No
g. Not sure
Answer: a option
 9. The Banking Ombudsman may reject a complaint at any stage if it appears to him that
a complaint made to him is:
a. not on the grounds of complaint referred to above
b. the complaint is without any sufficient cause
c. compensation sought from the Banking Ombudsman is beyond ₹ 20 lakh (₹ Two
Million).
d. All of above
Answer: d option
10. If a complaint is not settled by an agreement within a period of____, the Banking
Ombudsman proceeds further to pass an Award. 
a. 1 year
b. 1 month
c. 15 days
d. 1 week
Answer: b option