Can you complain against your bank for poor quality of service?

I deal with thousands of clients. Whenever I discuss about banking service (irrespective of the profile, age, resident or non-resident) most of them have one thing to say in common – ‘the quality of bank service is very bad’. This statement holds good for all banks be it nationalized or private. Those who use online banking service feel the private banks are much better. Those who operate physical transactions, find nationalized banks better. But, in general many of them are not happy about banking service.

Suppose, you come across a situation of a banker debiting (charging) your account with a fine or penalty or additional interest (for no fault of yours), but fails to address your issue, what can be done? Or if you find that the service provided by the bank is below average, can you really complain about it?

Banking Ombudsman

In order to address the grievances of the customer, Reserve Bank of India (RBI) has introduced Banking Ombudsman Scheme, 2006. The Banking Ombudsman is a senior official appointed by the Reserve Bank of India to redress customer complaints against deficiency in certain banking services. They have offices in State capitals.

The important grounds of complaints

• non-payment or  inordinate delay in the payment or collection of cheques, drafts, bills etc
• non-payment or delay in payment of inward remittances
• non-adherence to prescribed working hours
• complaints from Non-Resident Indians having accounts in India in relation to their remittances from abroad, deposits and other bank-related matters;
• levying of charges without adequate prior notice to the customer
• refusal to accept or delay in accepting payment towards taxes, as required by Reserve Bank/Government
• delays in sanction, disbursement or non-observance of prescribed time schedule for disposal of loan applications (deficiency of service)
• non-acceptance of application for loans without furnishing valid reasons to the applicant

When can one file a complaint?

• First, the aggrieved customer has to file a complaint at the bank branch. The banker is obliged to reply within 30 days.
• In case the banker fails to respond, the customer can approach Ombudsman, but within 13 months from the date of submission of the complaint at branch 

How to file a complaint?

• One can file a complaint with the Banking Ombudsman simply by writing on a plain paper; or
• One can also file it online (www.bankingombudsman.rbi.org.in) or by sending an email to the Banking Ombudsman

Fees – The Banking Ombudsman does not charge any fee for filing and resolving customers’ complaints

What if, ombudsman fails to address your issues?

If one is not satisfied with the decision passed by the Banking Ombudsman, one can approach the appellate authority against the Banking Ombudsmen’s decision. Appellate Authority is vested with a Deputy Governor of the RBI

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