The Reserve Bank of India (RBI) has constituted an internal working group to review, update and revise the Banking Ombudsman Scheme, which was last reviewed comprehensively in 2006. While the scheme in its current form covers all aspects of banking, from the point-of-view of customer service, there are some areas, which experts hope would be addressed as part of the review.
In 2011-12, the Banking Ombudsman Scheme was able to dispose off 94 per cent of the 77,507 complaints it received. This has been the disposal rate for three years in a row, RBI said in its annual report on the Banking Ombudsman Scheme, 2011-12. Most complaints were related to the failure to meet commitments, or not observing banking code or fair practices code (25 per cent), followed by credit/debit card (21 per cent) and deposit accounts (12 per cent) issues.
RBI's review of the scheme would look at the nature of complaints received and see if any of these need to be reduced or enhanced. For instance, the impending review might seek to introduce a time frame for the scheme to resolve complaints. At present, if a customer has a complaint, he files it with the bank. If the bank does not resolve it in 30 days, then the complaint would go to the Ombudsman, who might take another 30-40 days, as it could ask the bank and/or the customer for clarifications.
There are cases when it has taken two to three months for a complaint to be resolved, says V N Kulkarni, former bank official and debt counsellor with Bank of India's Abhay Credit Counselling Centre. “If there is no response from the bank, the Ombudsman should take ex parte decision. Since representations have been made to the RBI, it is possible that this might be addressed in the revised scheme,” he says.
Another likely revision, which has also been proposed by the Damodaran Committee on customer service, is to ask banks to strengthen their internal Ombudsman schemes so that the RBI's Banking Ombudsman can function as the Appellate Authority, says an official of the Indian Banks' Association. Currently, the Deputy Governor of RBI is the Appellate Authority.
In the recent past, the role of the scheme has been widened to include internet banking, ATM operations and other electronic services. It is being considered if there is a need to include complaints regarding harassment or rude behaviour by counter staff at bank branches in the ambit of the Ombudsman scheme. Similarly, increasing the geographic coverage of the scheme from the current 17 offices is also being considered, says a senior banking official.
In cases where monetary compensation is claimed by customers, the amount prescribed is the actual loss plus some nominal amount. But, in cases where the customer claims compensation for, say, mental harassment, it is being considered how much monetary compensation the Ombdusman can prescribe, the official adds.
Customers who are not satisfied with their bank's service can approach the Banking Ombudsman with their grievances. While, until now, the scope was restricted to products and services, going ahead it might be possible to pull up bank staff for poor conduct. While this may seem intangible, it would make bank staff more receptive to customers' requirements.
Similarly, if it is possible to resolve a complaint without approaching the Ombudsman, the bank should do it proactively and not wait for customers to lodge a complaint. Hence, a time frame would also help customers.
