Indian History
No. Banking Ombudsman
1 In order to strengthen the institutional mechanism for dispute resolution, the Reserve Bank in the year 1995 introduced the Banking Ombudsman (BO) scheme.
2 The BO is a quasi-judicial authority for resolving disputes between a bank and its customers. There are 15 Banking Ombudsman offices in the country at present.
3 The scheme covers grievances of the customers against Commercial Banks, Scheduled Primary Cooperative Banks and Regional Rural Banks.
4 In 2006, the Reserve Bank revised the BO scheme. Under the revised scheme, the BO and the attached staff are drawn from the serving employees of the Reserve Bank.
5 The new scheme is fully funded by the Reserve Bank and virtually covers all banking transactions related grievances except credit decision of banks.