RBI's integrated ombudsman scheme aims for seamless redress of grievances

Scheme to offer cost-free redress of complaints about 'deficiency' in services rendered by entities regulated by RBI, if not resolved to customers' satisfaction or not replied within 30 days

The integrated ombudsman scheme launched by the Reserve Bank of India (RBI), which, essentially, amalgamates three existing ombudsman schemes into one, creating a ‘one nation, one ombudsman’ mechanism, will go a long way in boosting customer confidence in the banking system and make the grievance redressal process seamless by providing a single platform to customers for getting speedy resolutions.

The scheme, RBI says, will provide cost-free redress of customer complaints involving ‘deficiency’ in services rendered by entities regulated by RBI, if not resolved to the satisfaction of the customers or not replied within a period of 30 days by the regulated entity.

RBI defines ‘deficiency in service’ as a shortcoming or an inadequacy in any financial service that results in financial loss or damage to the customer.

Prior to this, the RBI had three ombudsman schemes namely “Banking Ombudsman Scheme”, "Ombudsman Scheme for Non-banking finance companies”, and “Ombudsman scheme for Digital Transactions”.

Under the new scheme, a customer can file a complaint for ‘deficiency in service’ online through a portal designed by the RBI for this purpose. Or, he/she can file the complaint through electronic or physical mode to the centralised receipt and processing centre that has been set up by the RBI.

One of the benefits, RBI reckons, is, it will no longer be necessary for a complainant to identify under which scheme he/she should file a complaint with the ombudsman. Deficiency in service is the very ground under which a complaint can be filed, of course, with a specified list of exclusions. This scheme has, essentially, done away with the jurisdiction of each ombudsman office, making the RBI ombudsman mechanism jurisdiction neutral.

A common man will not have to run around to lodge his complaints anymore, the Prime Minister said while launching the scheme last week. “No matter the nature of the financial grievance, the complainant can lodge it online, and track it online for a time-bound resolution process. This one nation –one ombudsman scheme will directly help 44 crore loan accounts and 220 crore deposit account holders,” he added.

According to the governor of RBI, this scheme will reinforce confidence and trust in the financial system.

When it comes to resolution, the scheme says, the RBI regulated entity against which the complaint has been made will file a reply within 15 days, failing which the ombudsman can pass an ex-parte order or an award and the entity will have no right to appeal against the order. As per the scheme, in case the complaint is not resolved through facilitation, such action as may be considered appropriate, including a meeting of the complainant with the officials of regulated entity, for resolution of the complaint by conciliation or mediation may be initiated.

“…it puts in place a robust mechanism driving simplicity and transparency for complaints, redressal and dispute resolution. The ombudsman scheme will go a long way in enhancing customer confidence as it will effectively address grievances on fraud and failure of payment related to prepaid instruments (PPIs), including cards and digital wallets", said Anand Bajaj, MD&CEO, PayNearby.