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RBI includes complaints against electronic banking services under ombudsman scheme

LiveMint logoLiveMint 23-06-2017 Alekh Archana

Mumbai: The Reserve Bank of India (RBI) has allowed consumers to lodge complaints against banks for non-adherence to norms related to electronic banking services, including those provided on mobile phones, under the banking ombudsman scheme, its cost-free dispute resolution mechanism.

The central bank has also allowed customers to file complaints against banks for deficiencies arising out of sale of third party products such as insurance policies and mutual fund schemes sold by banks.

The banking ombudsman has now been powered to pass an award of Rs20 lakh, as against the earlier threshold of Rs10 lakh

The scope of the scheme, introduced in 1995, has been expanded.

The banking ombudsman has now been powered to pass an award of Rs20 lakh, as against the earlier threshold of Rs10 lakh. The ombudsman can also give a consumer up to Rs1 lakh as compensation for loss of time, expenses incurred and mental anguish suffered during fighting the case.

According to the annual report on the banking ombudsman scheme for 2015-16 (July-June), 15 offices of banking ombudsman received 102,894 cases, a jump of 21% over the 2016-17 fiscal year.

Currently, there are 20 offices of banking ombudsman, according to the information available on central bank’s website.

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