Unit - 27 : Procedure for Redressal of Grievances This Chapter deals with the Grounds of Complaint , from filing a complaint and the manner of dealing with it , this unit is very important . The aspects on which a complaint can be filed are exhaustive and cover all of the services the bank offers to its customers . Though this cannot be a complaint for not sanctioning a loan , it can be for non- observance of RBI Directives , delay in decision, interest rate directives and non- acceptance of loan application. For effectively dealing with the complaint the banking ombudsman has powers to call for information from the parties concerned . The complaint needs to be in writing and supported by documents and declaration as given in the scheme . The Limitation Period for filing a complaint is one year. This Covers Procedure for filing a complaint , Rejection of the complaint , procedure before the appellate authority.
Grounds of Complaint A Complaint on any of the following grounds alleging deficiency in banking service may be filed with the Banking Ombudsman having the jurisdiction: 1. non-payment/inordinate delay in the payment/collection of cheques 2. non-acceptance, without sufficient cause, of small denomination notes 3. non-issue of drafts 4. non-adherence to prescribed working hours 5. failure to honour guarantee/LC commitments by banks. 6. claims in respect of unauthorized/fraudulent withdrawals. 7. complaints from exporters in India. 8. Complaints from NRI having account in India. Loans and Advances 9. non-observance of RBI directives on interest rates 10. delay in sanction. disbursement of Loan 11. non-acceptance of application for loans without giving valid reasons. Procedure For Filing Complaint 1. before making complaint to the BO, must be made written representation to the bank and either the bank rejected the complaint or the complainant had not received any reply within one month after the bank recd. the complaint. 2. The complaint should be made before one year after the cause of action has arisen.
Power To Call For Information Settlement Of Complaint By Agreement Award by the Banking Ombudsman 1. If the complaint is not settled by agreement within one month from the date of the receipt of the complaint or such further period, He may pass an award after giving the parties reasonable opportunity to present their case. 2. A copy of the award shall be sent to the complainant and the bank named in the complaint. An award shall not be binding on bank unless complainant gives its letter of acceptance within 15 days from the date of the receipt of the award. If the complainant does not accept the award and fails to furnish the letter of acceptance within such time without making any request for extension of time to comply with m the Banking Ombudsman shall reject such requests. 3. The bank shall within one month from the date of receipt by it, of the acceptance in writing of the award by the complainant comply with award and intimate the compliance to the BO. 4. If the bank disagree, bank must intimate BO within one month from the date of the receipt of copy of the Award to file the review petition. 5. The BO shall report to the RBI, review authority, about the non-compliance by any bank of an Award. On receipt of such reports Review Authority will pass necessary orders. 6. The maximum amount BO can award for compensation is Rs.10 lakhs. Rejection Of the Complaint 1. The banking ombudsman may reject the complaint at any stage if it appears to him that the complaint made is: (i) frivolous, vexatious, mala-fide; or (ii) without any sufficient cause; or (iii) that it is not pursued by the complainant with reasonable diligence; or (iv) prima facie, there is no loss or damage or inconvenience caused to the complainant; or (v) beyond the pecuniary jurisdiction of the banking ombudsman under the scheme 2. The banking ombudsman may reject a complaint at any stage, if after consideration of the complaint and evidence produced before him the banking ombudsman is of the opinion that the complicated nature of the complaint requires consideration of elaborate documentary and oral evidence and the proceedings before the banking ombudsman are not appropriate for adjudication of such a complaint. The decision of the banking ombudsman in this regard shall be final and binding on the complainant of the bank. Review Authority : 1. Any person aggrieved by the award has the right to prefer an appeal against the award before the appellate authority within forty-five days form the date of receipt of the award. The appellate authority is empowered to allow a further period not exceeding thirty days on his being satisfied that the appellant had sufficient cause for not preferring the appeal in time. In case the appeal is by the bank, the filing of appeal should have been with the previous sanction of the Chairman or in his absence the Managing Director or Executive Director or the Chief Executive Officer or any other officer of equal rank. 2. The appellate authority after giving the parties a reasonable opportunity of being heard, may pass the following orders: (a) dismiss the appeal; or (b) allow the appeal and set aside the award; or (c) remand the matter to the banking ombudsman for fresh disposal in accordance with such directions as the appellate authority may consider necessary or proper; or (d) modify the award and pass such directions as may be necessary to give effect to the award so modified; or (e) pass any other order as it may deem fit. The order of the appellate authority has also the same effect as that of the award of the banking ombudsman.