Reserve Bank-Integrated Ombudsman Scheme

About Reserve Bank-Integrated Ombudsman Scheme

• It was launched on November 12, 2021.
• The Scheme adopts the ‘One Nation One Ombudsman’ approach by making the RBI’s Ombudsman mechanism jurisdiction neutral.
• It integrates the erstwhile three Ombudsman schemes of RBI namely: the Banking Ombudsman Scheme, 2006, the Ombudsman Scheme for Non-Banking Financial Companies, 2018 and the Ombudsman Scheme for Digital Transactions, 2019.
• Features of Reserve Bank-Integrated Ombudsman Scheme
  • It defines ‘deficiency in service’ as the ground for filing a complaint, with a specified list of exclusions. A deficiency of service is a shortcoming or an inadequacy in the financial service or some other service related to it that the Regulated Entities (RE) is supposed to provide.
  • A Centralised Receipt and Processing Centre has been set up at RBI, Chandigarh, for receipt and initial processing of physical and email complaints in any language.
  • The regulated entity will not have any right to appeal in cases where an award is issued by the ombudsman against it for not furnishing satisfactory and timely information.
  • Banks covered: It covers all commercial banks, Non-Banking Financial Companies (NBFCs), RRBs, Payment System Participants, most Primary (Urban) Cooperative Banks with a deposit size of ₹50 crore and Credit Information Companies. 

Reserve Bank-Integrated Ombudsman Scheme FAQs

Q1: What is the maximum compensation for an integrated ombudsman scheme?

Ans: Up to Rupees 20 lakh, in addition to, up to Rupees One lakh for the loss of the complainant’s time.

Q2: Who can file a complaint to the ombudsman?

Ans: Any person who has a grievance against an insurer, may himself or through his legal heirs, nominee or assignee,

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Q3: Who introduced the banking ombudsman scheme?

Ans: Reserve Bank of India

Q4: What is the eligibility of ombudsman

Ans: An executive of the rank of General Manager, Chief General Manager, or other suitable authority.

Source: IE