Context: The RBI merged the three Ombudsman schemes (i) Banking Ombudsman Scheme (ii) Ombudsman Scheme for Non-Banking Financial Companies and (iii) Ombudsman Scheme for Digital Transactions into a single scheme to make the process of redressal of grievances easier for the consumers across different verticals.
About Integrated Ombudsman Scheme of RBI
- Aim of the scheme: Provide cost-free redressal of customer complaints involving deficiency in services rendered by entities regulated by RBI, if not resolved to the satisfaction of the customers or not replied within a period of 30 days by the regulated entity.
- Legislative backing: The scheme has been framed by RBI under Banking Regulation Act, 1949; Reserve Bank of India Act, 1934 and Payment and Settlement Systems Act, 2007.
- Entities Covered:
- Commercial Banks, Regional Rural Banks, Scheduled Primary (Urban) Co-operative Banks and Non- Scheduled Primary (Urban) Co-operative Banks with deposits of Rupees 50 crore and above.
- Non-Banking Financial Companies (excluding Housing Finance Companies) which (a) are authorised to accept deposits; or (b) have customer interface, with an assets size of Rupees 100 crore.
- Appellate Authority: Executive Director-in charge of Consumer Education and Protection Department of RBI.
- Payment system operators such as Paytm, PhonePe, TReDS platform etc.
- Grounds on which complaints can be filed: Deficiency in services provided by above entities which may or may not result in financial loss or damage to customers.
Mode for registering complaints: RBI to establish the Centralised Receipt and Processing Centre. Complaints can also be filed online on a separate portal. - Institutional Framework to handle complaints: RBI to appoint Ombudsman and Deputy Ombudsman with a tenure of 3 years.
- Limits on compensation payable to Customer: The Ombudsman shall have the power to provide a compensation of up to Rs 20 lakhs.
- Filing complaint: It may be noted that the complaint should be made to the RBI Ombudsman not later than one year after receiving the reply of the Regulated Entities or, in cases where no reply is received, not later than one year and 30 days after the date of the representation to the Regulated Entities.
Earlier Ombudsman Scheme of RBI:
Need: The three ombudsman schemes mentioned above had different grounds of complaints, leading to uneven redress across customers of different entities. Further, they also provided for different compensation amounts resulting in unequal treatment of aggrieved customers.