Awareness Key To Bank Ombudsmans Success

The first banking ombudsman for West Bengal and Sikkim, S L Bose, today said the success of the scheme would depend upon adequate public awareness and willingness of the banks to comply with the ombudsmans recommendations.

Addressing his first conference after being appointed, Bose pointed out that the real problem with making his post a success is the fact that the banking customers are, in general, not aware of this avenue for seeking redressal.

He said that he would be operating out of the Calcutta office of the Reserve Bank of India.

He would be supported with staff from the Reserve Bank and from the United Bank of India, which is the main bank for the state.

 

If necessary, other banks in the region like Allahabad Bank and the United Commercial (Uco) Bank may also be roped in to provide some officers as the scheme is a participatory one evolved with the support of the public sector banks.

Bose, who is the twelvth ombudsman to be appointed after the scheme was first evolved in June 1995, assumed charge yesterday.

He is a retired member of the Indian Administrative Service and has been a member of the board of Revenue and secretary, Land and Land Reforms department, government of West Bengal.

The ombudsman scheme was envisaged as a concept to provide an effective, expeditious and inexpensive means of customer grievance redressal.

It is applicable to all scheduled commercial banks, except regional rural banks.

It is also applicable to all scheduled primary co-operative bank.

The banking ombudsmans authority includes all complaints against deficiencies in service and all complaints concerning loans and advances.

The procedure for redressal is a three-fold one involving negotiations, settlement and, finally, an award, which would be binding on both the customer seeking redressal and the bank against whom the complaint has been lodged.

While Bose appeared optimistic about the role of the banking ombudsman in the two states under his jurisdiction, questions about the efficacy of the scheme remain.

By Boses own confession, some existing ombudsman have commented on the lack of work.

The real problem the newly appointed ombudsman said is to make people aware of the institution and to remove the considerable red tape involoved in the process of filing a complaint.