BCSBI & Banking Ombudsman

Studied the objectives,code of bank’s commitment to customers, The micro.small and medium enterprises development act 2006,code of bank’s commitment to MSEs and banking ombudsman

1. BCSBI & BANKING OMBUDSMAN SHRUTI MOHIT MRUNMAYEE SAYALI RONAK PRITI

2. INTRODUCTION This is a Code of Customer Rights, which sets minimum standards of banking practices we will follow as a member of BCSBI while dealing with individual customers. It provides protection to customers and explains how a member bank is required to deal with customers in its day-to-day operations

3. OBJECTIVES The Code has been developed to : Promote fair banking practices Increase transparency Achieve higher operating standards Promote a fair and cordial relationship Foster confidence in the banking system P romote safe and fair customer dealing I ncrease awareness of customers

4. CODE OF BANK’S COMMITMENT TO CUSTOMERS This is a Code of Customer Rights, which sets minimum standards of banking practices, we will follow as a member of BCSBI, while dealing with individual customers. It provides protection to customers and explains how a member bank is required to deal with customers in its day-to-day operations.

5. RIGHT TO FAIR TREATMENT 1. Minimum banking facilities of receipt and payment. 2.Meeting the standards and commitment for the product and services 3. Relevant laws 4. Ethical principles 5.Offering digital banking 6. Training staff 7. No discrimination

6. RIGHT TO FAIR DEALING,TRANSPARENCY AND HONESTY Timely and adequate information Advertising and Promotional literature is clear and not misleading. Do Not Call service and Interest rate Tariff schedule Complete information through SMS,print media etc. Displaying information in our branch and website our policies Create awareness of the code among customers

7. RIGHT TO SUITABILITY We will offer you product appropriate to your needs and based on an assessment of your financial circumstances.

8. RIGHT TO PRIVACY AND CONFIDENTIALITY 1. Personal information as private and confidential Exceptions: a)CICs- Loans,unsecured loans, credit card etc. b)Information required by law or regulator. c) Authorised by us d)Banker’s reference e)To prevent fraud 2. Marketing purpose 3. Information collected other than KYC

9. RIGHT TO GRIEVANCE REDRES S AL AND FORUM 1. Correcting our mistakes promptly 2. Handling complaints 3. Guidances 4. Problem arising out of technological failures

10. It is generally understood as the framework of rules, relationships, systems and processes within and by which authority is exercised and controlled in corporations . CORPORATE GOVERNANCE

11. NEED FOR CORPORATE GOVERNANCE Rights and equitable treatment of share holders Role and responsibilities of the board Integrity and ethical behavior Corporate Scams or Scandals Globalization      

12. CORPORATE GOVERNANCE PILLARS

13. THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006 No. 27 oF 2006 [16thJune, 2006.] An Act to provide for facilitating the promotion and development and enhancing the competitiveness of micro, small and medium enterprises iiDd for matters connected therewith or incidental thereto.

14. Classification of MSMEs

15. Micro, Small and Medium Enterprises (MSMEs) are often hailed as the pillars of Indian economy. MSMEs areProviding employment to nearly 312 lakh people through about 128 lakh units, located in both the rural and urban areas across the country. Why MSMEs are important?

16. Code Of Bank’s Commitment To Micro And Small Enterprises It provides protection to you and explains how banks are expected to deal with you in your day-to-day operations and in times of financial difficulties Objectives of Code a. To give a positive thrust b. To promote good and fair banking practices  c. To increase transparency d. To improve our understanding of your business through effective  communication. e. To encourage market forces, through competition, to achieve higher  operating standards. f. To ensure timely and quick response to your banking needs. g. To foster confidence in the banking system.  

17. LENDING Credit Guarantee Fund Trust for Micro and Small Enterprises which is extended by eligible banks and is popularly known as CGTMSE guarantee scheme for MSEs Reality:  Most of the MSMEs crib that bank officials very rarely talk about the scheme

18. Code for loan application Acknowledge, in writing, the receipt of your loan application, whether submitted manually or online, indicating therein the time frame within which the application will be disposed of. ICICI InstaOD : ICICI Bank has launched instant overdraft ‘ InstaOD ’ facility for MSME. Customers can get overdraft facility up to Rs 15 lakh for a year anytime, anywhere using the bank’s Internet and mobile banking app. the new facility will avail the facility without visiting a branch and submitting physical documents. 

19. What is Banking Ombudsman?

20. Introduction Meaning of Banking Ombudsman? Appointment of banking ombudsman Number of banking ombudsman’s till date Banks covered under the Banking Ombudsman Scheme, 2006 Commercial banks RRB’s Scheduled Primary co-operative Bank An inexpensive forum

21. Grounds of Complaint Non-adherence to prescribed working hours Failure/delay in providing Banking facilities Complaints from NRI in relation to remittances Refusal to open deposit Accounts Levying of charges without prior notice Instructions of RBI on ATM or Credit card operations Non-disbursement/delay in disburement of pension Delay in Accepting Payment towards taxes Forced Closure of deposit Account Refusal to close/Delay in closing the Account Non-Payment or Delay in Payment

22. C omplaint in respect to loans and advances Non-observance of Reserve Bank Directives on interest rates D elays in sanction or non-observance for disposal of loan applications N on-acceptance of application for loans without giving valid reasons Non-observance of Reserve Bank guidelines on recovery agents by banks Non-observance of any other instruction specified by the RBI

23.   When and where can one file a complaint? When:- No reply is received from the bank within one month Bank rejects the complaint The customer is not satisfied by the reply given by the Bank. Where:- Complaint can be filed at the office of the Banking Ombudsman Complaint related to credit cards and other type of services

24. Steps for lodging a Complaint The complaint has to be made within one year The complain can be given on a plain sheet of paper

25. Comparative chart of complaints handled by BO

26. Powers of the Banking Ombudsman Issue general powers of Superintendence. Control over the office . To incur expenditure on behalf of the office. In order to exercise such power, the Banking Ombudsman will draw up an annual budget for his office in consultation with Reserve Bank and shall exercise the powers of expenditure within the approved budget. The Reserve Bank will indicate the share of expenditure to be borne by the concerned banks.  The Banking Ombudsman shall send to the Governor, Reserve Bank, by 31st May every year, a report containing a general review of the activities of his Office during the preceding financial year.  Authority of each Banking Ombudsman extends to the territorial limits entailed by the Reserve Bank of India.

27. When will one's complaint not be considered by the Banking Ombudsman? The complaint to Banking Ombudsman is made after the lapse of more than one year and one month from the date of complaint made to the bank. The subject matter of the complaint is pending for disposal / has already been dealt with at any other forum like court of law, consumer court etc. Frivolous (not having any serious purpose or value) or vexatious (causing trouble) complaints. The institution complained against is not covered under the scheme. If the complaint is for the same subject matter that was settled through the office of the Banking Ombudsman in any previous proceedings.

28. Rejection of Complaint The Banking Ombudsman may reject a complaint at any stage if it appears that the complaint made to them is: Not on the grounds of complaint mentioned above. Requires consideration of elaborate documents and oral evidence. The complaint is without any sufficient cause. The complaint that it is not pursued by the complainant with reasonable diligence. There is no loss or damage or inconvenience caused to the complainant.

29. Limits of Compensation The amount, if any, to be paid by the bank to the complainant by way of compensation for any loss suffered by the complainant is limited to the amount arising directly out of the act or omission of the bank or ₹ 20 lakhs, whichever is lower. The Ombudsman may choose to award the compensation, not exceeding Rs 1 lakh, to the complainant for mental agony and harassment .

30. Legal Route If you are not happy with the settlement offered by the Ombudsman, you can file an appeal before the Appellate Authority within 30 days. The Appellate Authority in this case is the Deputy Governor of the RBI. Alternatively, you can approach consumer redressal forums, which take up bank-related complaints, or even the courts .

31. BANKING OMBUDSMAN COMPLAINT FORM ( TO BE FILLED UP BY THE COMPLAINANT ) To: The Banking Ombudsman Place of BO’s office………………………….. Dear Sir, Sub: Complaint against …………………….(Name of the bank’s branch) of …………………………………………………………………………………(Name of the Bank) Details of the complaint are as under: 1. Name of the Complainant ………………….. 2. Full Address of the Complainant ……………………………………………………………… Pin Code ……………….. Phone No/ Fax No. .…………………… Email ……………………. 3. Complaint against (Name and full address of the branch/bank) …………………………. Pin Code ……………………. Phone No. / Fax No. ……………………. 4. Particulars of Bank or Credit card Account (If any) ………………………………………………………………………… 5. (a) Date of representation already made by the complainant to the bank (Please enclose a copy of the representation) ………………………. (b) Whether any reminder was sent by the complainant? YES/NO ( Please enclose a copy of the reminder ) ………………………. 6. Subject matter of the complaint (Please refer to Clause 8 of the Scheme) ………………………………………………………………………………………… 7. Details of the complaint: (If space is not sufficient, please enclose separate sheet) ……………………………………………………………………………………………… 8. Whether any reply (Within a period of one month after the bank concerned received the representation) has been received from the bank? Yes/ No ( if yes, please enclose a copy of the reply )

32. 9. Nature of Relief sought from the Banking Ombudsman ……………………………………………………………………………… ( Please enclose a copy of documentary proof, if any, in support of your claim ) 10. Nature and extent of monetary loss, if any, claimed by the complainant by way of compensation (please refer to clauses 12 (5) & 12 (6) of the Scheme) Rs .………………. 11. List of documents enclosed: (Please enclose a copy of all the documents ) 12. Declaration: ( i ) I/ We, the complainant/s herein declare that: a) the information furnished herein above is true and correct; and b) I/We have not concealed or misrepresented any fact stated in the above columns and in the documents submitted herewith. ( ii) The complaint is filed before expiry of period of one year reckoned in accordance with the provisions of Clause 9(3)(a) and (b) of the Scheme. ( iii) The subject matter of the present complaint has never been brought before the Office of the Banking Ombudsman by me/ us or by any of the parties concerned with the subject matter to the best of my/ our knowledge . (iv) The subject matter of the present complaint has not been decided by/pending with any forum/court/arbitrator. ( v) I/We authorise the bank to disclose any such information/ documents furnished by us to the Banking Ombudsman and disclosure whereof in the opinion of the Banking Ombudsman is necessary and is required for redressal of our complaint. ( vi) I/We have noted the contents of the Banking Ombudsman Scheme, 2006 . Yours faithfully, (Signature of Complainant) NOMINATION – (If the complainant wants to nominate his representative to appear and make submissions on his behalf before the Banking Ombudsman or to the Office of the Banking Ombudsman, the following declaration should be submitted.) I/We the above named complainant/s hereby nominate Shri/ Smt ………………………………………….. who is not an Advocate and whose address is ……………………………………………………………………………………………………………… ……… ……… as my/our REPRESENTATIVE in all proceedings of this complaint and confirm that any statement, acceptance or rejection made by him/her shall be binding on me/us. He/She has signed below in my presence. ACCEPTED (Signature of Representative) (Signature of Complainant) Note: If submitted online, the complaint need not be signed.

33. THANK YOU