Reserve Bank of India (RBI) may soon empower 15 ombudsmen to redress complaints of aggrieved credit card holders against banks indulging in unfair practices. "We are tyring to bring the issues under the jurisdiction of Ombudsmen," RBI offficials said.The central bank has been getting several complaints regarding issuance of unsolicited cards, wrongful activation of cards, lack of transparency while levying service charges and absence of an effective grievance redressal machinery from various quarters, including media and the public.There have been a rising number of complaints against banks, mainly in the private domain, of customers being billed service charges even when the cards remained unused, they said, adding there were also instances of leaking out the details of customers to other businesses."Customers have virtually no doors to knock because the banks pass on the blame to their direct selling agents and franchisees," they said.In view of the rising trend, the RBI had taken stock of the situation, and accordingly asked Indian Banks Association (IBA) and large credit card issuers to evolve a code of conduct to be adopted by banks.The proposed extension of the ombudsmen scheme is an effective dispute redressal mechanism to ensure fair practice by banking sector, they added.
