The Madras High Court has upheld the Constitutional validity of the Reserve Bank of India – Integrated Ombudsman Scheme (RBI-IOS) 2021.
Need for RBI-IOS:
- Initiated in the 1990s, the earlier schemes were often critiqued for their limited grounds for maintainable complaints, leading to a consumer preference for prolonged judicial processes.
- The integration of multiple systems allows for an expansion in the types of complaints that can be lodged, encouraging a more positive consumer response.
About Reserve Bank of India – Integrated Ombudsman Scheme (RBI-IOS):
- RB-IOS merges three existing RBI ombudsman schemes: the Banking Ombudsman Scheme of 2006, the Ombudsman Scheme for NBFCs of 2018, and the Ombudsman Scheme for Digital Transactions of 2019.
- Launched in 2021, it covers a broader range of RBI-regulated entities including all commercial banks, NBFCs registered with RBI, and Credit Information Companies.
- The scheme incorporates not only scheduled but also non-scheduled primary co-operative banks with deposits of Rs 50 crore and above.
- It offers a unified platform for addressing customer grievances concerning service deficiencies, eliminating jurisdictional conflicts with a ‘One Nation One Ombudsman’ approach.
Key Features:
- Deficiency in service is the specified ground for filing complaints, with certain exclusions clearly stated to prevent rejection on technicalities.
- Centralized processing of complaints is handled in Chandigarh, accommodating submissions in any language.
- Utilizes Artificial Intelligence tools to enhance coordination between banks and investigative agencies.
- Customers can file complaints, submit documentation, track their complaint status, and provide feedback through a single email address.
- A multilingual toll-free number is available for comprehensive grievance-related information.
- No right of appeal for regulated entities against an ombudsman’s decision, ensuring prompt compliance.
Ref: Source
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Frequently Asked Questions (FAQs)
What is the RBI-Integrated Ombudsman Scheme?
The RBI-Integrated Ombudsman Scheme (RBI-IOS) combines three former RBI schemes to address complaints against all commercial banks, NBFCs registered with RBI, and Credit Information Companies. It was launched in 2021.
Can complaints be filed in any language under the RBI-IOS?
Yes, the scheme allows for complaints to be submitted in any language, which are then processed centrally in Chandigarh.
What is an ombudsman?
An ombudsman is an official appointed to investigate individuals’ complaints against maladministration, especially that of public authorities.
What is scheduled bank?
A scheduled bank is a bank listed under the 2nd Schedule of the Reserve Bank of India Act, 1934, which includes all nationalized banks, foreign banks, and cooperative banks meeting certain criteria.