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 scope of the scheme, introduced in 1995, has been expanded.
The banking ombudsman has now been powered to pass an award of INR 20 lakh, as against the earlier threshold of INR 10 lakh.
The ombudsman can also give a consumer up to INR 1 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.
