RBI recently introduced a new resolution mechanism for consumer complaints regarding services provided by entities regulated by the Reserve Bank of India in an expedient and cost-effective manner. The scheme is called Reserve Bank – Integrated Ombudsman Scheme. Here are the key highlights of the scheme:
Centralised Receipt and Processing Centre
The Regulation provides for a number of ways in which consumers can make complaints under the Scheme. Complaints can be filed on the portal: https://cms.rbi.org.in. E-mailed and physical complaints, as well as postal and hand-delivered ones, can be sent to the Centralised Receipt and Processing Centre.
Powers of the Banking Ombudsman
The Ombudsman has the power to consider the complaints of customers of Regulated Entities relating to deficiency in service. There is no limit to the amount of money involved in a dispute that can be challenged before the Ombudsman. However, in addition to up to Rupees One lakh for loss of time, costs incurred, and mental suffering caused to the complainant, the Ombudsman has the authority to compensate up to Rupees 20 lakh for any consequential losses sustained.
Grounds of Complaint
Customers can submit a complaint against a Regulated Entity (Bank, NBFC etc) for deficiency of service, directly or through an authorized representative. However, the complainant has to first make a written complaint to the Regulated Entity and only if the complaint was rejected wholly or partly by the Regulated Entity and the complainant is not satisfied with the reply, can a complaint be filed with the Banking Ombudsman.
Procedure for Filing a Complaint
The complaint may be submitted online via the portal designed for this purpose (https://cms.rbi.org.in). It can also be submitted via electronic or physical mail to the Centralised Receipt and Processing Centre.
Resolution of Complaints
The Ombudsman will try to facilitate, conciliate, or mediate a settlement of a complaint between the complainant and the Regulated Entity if possible.
In case a complaint is not resolved through facilitation, the Ombudsman may take any action it deems appropriate, including having the complainant meet with representatives of Regulated Entity to attempt to resolve the problem through conciliation or mediation.
Award by the Ombudsman
The Ombudsman will pass an Award in the event that the matter is not resolved through conciliation or mediation, after taking into account the principles of banking law and practice, directions, instructions and guidelines issued by the Reserve Bank from time to time and such other factors as may be relevant.
The maximum compensation the Ombudsman can award is Rupees 20 lacs. The complainant may also be compensated not more than Rupees one lakh by the Ombudsman, taking into account the loss of time, costs incurred, and mental distress experienced by the complainant.
Rejection of a Complaint
The Ombudsman may reject a complaint at any stage if:
(a) no grounds are found for deficiency in service; or
(b) the compensation sought for the consequential loss is beyond the power of the Ombudsman; or
(c) the complaint is not pursued by the complainant with reasonable diligence; or
(d) the complaint is without any sufficient cause; or
(e) the complaint requires consideration of elaborate documentary and oral evidence and the proceedings before the Ombudsman are not appropriate for adjudication of such complaint; or
(f) in the opinion of the Ombudsman there is no financial loss or damage, or inconvenience caused to the complainant.
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