banking ombudsman and their functions duties

banking ombudsman and their functions duties

1. BANKING OMBUDSMAN SCHEME Presented by : Shariqa Aftab Ankita Waison Shivani Thakur Erica Madan Pavneet Kaur

2. What is BANK? Banking is defined accepting for the pupose of lending and investment,deposit of money from the public repayable on demand or otherwise and withdraw by cheque,draft,order or otherwise. WHO IS OMBUDSMAN? An official appointed to investigate individual’s complaint against maladministration especially in public authorities.

3. What is Banking Ombudsman Scheme? The banking ombudsman scheme enables an expeditious and inexpensive forum to bank customers for resolution of complaints relating to certain services rendered by banks.The scheme was introduced under sec.35 of Banking Regulation Act 1949 by RBI with effect from 1995. It covers all scheduled commercial banks,regional rural banks and co-operative banks.

4. POWERS AND DUTIES OF OMBUDSMAN (Clause 8) Ombudsman has power to obtain information or furnish certified copies of any documents relating to the Banking Service. In clause 8 Ombudsman is empowered to settle complaints of tax payers by Agreement Conciliation Mediation Ombudsman consider such complaints by passing an “award” and compile a list of ‘awards’ between April and March of each financial year and report to the chairman of CBEC.

5. Ombudsman Protest's individual tax payer’s right (TPR) Send Monthly Report to the Secretary, Department of revenue, Government of India and the Chairman CBEC. Identify issues that increase the compliance burden or create problems for tax payers and bring those to the attention of CBEC and the Ministry of finance. Furnish a general review and annual report every year and make recommendations to improve the Indirect Tax Administrations.

6. GROUNDS OF FILING COMPLAINT THE TYPES AND THE SCOPE OF COMPLAINTS WHICH MAY BE CONSIDERED BY BANKING OMBUDSMAN IS VERY COMPREHENSIVE ,AND IT HAS BEEN EMPOWERED TO RECEIVE AND CONSIDER COMPLAINTS PERTAING TO THE FOLLOWING ; REFUSAL TO OPEN DEPOSITS ACCOUNT WITHOUT ANY VALID REASON FOR REFUSAL NON-ACCEPTANCE ,WITHOUT SUFFICIENT CAUSE ,OF SMALL DENOMINATION NOTES TENDERS FOR ANY PURPOSE AND FOR CHARGING OF COMMISSSION FOR THIS SERVICES NON-PAYMENT OR DELAY IN PAYMENT OF INWARD REMITTANCES; FALIUR TO ISSUES OR DELAY IN ISSUE,OF DRAFT, PAY ORDER OR BANKERS CHEQUES NON ADHERENCE TO PRESCRIBED WORKING HOURS FAILURE TO HONOUR GAURANTEE OR LETTER OF CRADIT COMMITMENT

7. NON PAYMENT OR INORDINATE DELAY IN THE PAYMENT OR COLLECTION OF CHEQUES DRAFTS BILLS ETC ; FAILUR TO PROVIDE OR DELAY IN PROVIDING A BANKING FACILITY (OTHER THAN LOANS AND ADVANCES ) PROMISED IN WRITING BY A BANK OR ITS DIRECT SELLING AGENTS LEVING OF CHARGES WITHOUT ADEQUATE PRIOR NOTICE TO THE CUSTOMERS REFUSAL TO ACCEPT OR DELAY IN ACCEPTING PAYMENT TOWARD TAXES,AS REQUIRED BY RBI/GOVERNMENT REFUSAL TO ISSUE OR DELAY IN ISSUING OR FAILURE TO SERVICES OR DELAY IN SERVICING OR REDEMPTION OF GOVERNMENT SECURITIES FAILURE TO HONOUR GUARANTEE OR LETTER OF CRADIT COMMITMENTS

8. PROCEDURE OF FILING COMPLAINT A person can make a complaint either by himself or through his authorised representative ( other than advocate) to the banking ombudsman within whose jurisdiction the branch / office is situated. If the complaint is arising out of the operations of credit cards , it shall be filled before the banking ombudsman within whose territorial jurisdiction the billing address of the card holder is located and not the place where the bank concerned or the credit card processing unit is located .

9. PROCESS OF PLAINT BEFORE GOING TO OMBUDSMAN The customer should have made a written complaint to the bank. The bank should have rejected it OR No reply is received from the bank within a period of ONE MONTH OR The reply is not satisfied with the reply The complaint to ombudsman should be made not later one year after the complaint has received the reply of the bank to his representation or, where no reply is received , not later than one year and one month the date of the representation to the bank . The complaint should not pertain to the same subject matter , for which any proceedings before any court, tribunal or arbitrator or any other forum is pending or a decree or Award or order has been passed by any such court , tribunal arbitrator or forum. The complaint is not frivolous or vexatious in nature .

10. CASE 1 The complaint was having saving bank account with the opposite party bank. Being an employee to TCS, his salary and other allowances were being directly credited to his account with bank. He alleged that the bank had issued a cheque book without his knowledge to someone else and had passes cheques which are not drawn by him. The total amount so fraudlently withdrawn from his account amounted to Rs 977,000/-. A police complaint was also filed. Court Held: The subsequent developments after filing of the police complaint and opinions by GEQD, lead to a conclusion that the culprits had made fradulent withdrawals by forgoing the signature of the complaint.In the circumstances, prima facie forgery had been established. Legally if the drawer’s cheque is forged or unauthorised, however clever te forgeryvis, the banker cannot debit his customers account.The bank could not bring any proof that the complainant was in any way connected with the fraud or his involvement in forgery hence and was liable.

11. CASE 2 The complainant, when he tried to withdraw cash through ATM, there was power supply faliure and he could not withdraw cash whereas his account was debited by Rs 600/-. The complaint reported the matter to the bank. But inspite of his request and telephonic talk the bank did not take any action and replied that he might have withdrawn the cash as per the list of transactions available with them. Court Held :On perusal of the disputed transactions and cash summary as per ATM, the bank found that the cash was not dispensed for the disputed transaction and they reimbursed the amount.

12. Thank you