Banking Ombudsman: Meaning, functions, appointment, reforms explained
What is Banking Ombudsman (BO)? He hears customers’ complaints against banks. BO was first setup in UK. In India, RBI started this scheme in 1995. Appointment & Tenure Earlier RBI used to appoint reputed persons from banking, finance, management, legal etc. sectors as Banking Ombudsmen (BO). But now RBI has reserved this BO post for its own Chief General Managers and General Managers. Tenure: 3 years at a time. Reappointment: yes possible. Jurisdiction of Banking Ombudsman? Banking Ombudsman (BO) Scheme applies to whole of India (including Jammu and Kashmir). Banking Ombdusmen have jurisdiction over All commercial banks (scheduled and non scheduled, public and private) Regional rural banks scheduled primary co-operative banks NBFCs (BO’s Jurisdiction limited to “loan” part.) Banking Ombudsman is not a replacement of Consumer forum/courts. He merely supplements them. Banking Ombudsman deals with matters less than or equal to Rs.10 lakhs. Here are some examples situation where BO c