Reserve Bank – Integrated Ombudsman Scheme

RBI

In the month of November, 2021, Prime Minister Narendra Modi launched the Reserve Bank-Integrated Ombudsman Scheme. This program aims to improve the grievance mechanism for handling complaints against all the entities which are regulated by the RBI.

Highlights

This scheme looks to address various kinds of financial grievances. It helps to avoid situations where a person needs to visit different departments of the central bank. This allows one to file complaints, submit documents in one place and track status. This system is called an integrated ombudsman system because it has a portal, email ID and the address of all complaints. The Theme of the Reserve Bank-Integrated Ombudsman Scheme is based on the One Nation-One Ombudsman Program. The One Nation-One Ombudsman Program aims to handle complaints about non-bank financial companies, bankers, and digital transactions. It works with the motto of portals, email addresses, and email addresses for customers to report complaints. The system is operated by 22 central bank offices nationwide.

About Ombudsman

The Ombudsman is a type of complaints agency where a customer can lodge a complaint if any financial institutions that is regulated by RBI do not resolve their complaint within 30 days period. Even if the customer is not satisfied with the solution or explanation offered by the financial institution, the Ombudsman can be contacted. In the year 1995, the Banking ombudsman scheme was launched. It has been revised five times and is the basis for the introduction of the 2018 Ombudsman Scheme for Non-Banking Financial Companies and the 2019 Ombudsman Scheme for Digital Transactions.

Benefits of the scheme

This regulation helps lift jurisdiction restrictions. It provides a single point of reference for customers to track the status of complaints, submit documents, and provide feedback. The program has set up a central reception and processing center to handle all complaint documents. This helps India move towards one country-one jurisdiction approach. RBI’s integrated ombudsman system is an important step. Regardless of the type of financial complaint, the complainant can submit it online and follow it online to enable a time-limited resolution process. This applies to all companies regulated by the RBI. Complaints from account owners can be resolved on this one platform. In the case of online scams and cyber scams, RBI makes great use of artificial intelligence. Investigative authorities and banks will coordinate in the shortest possible time to eliminate fraud. Not only does this help prevent fraud, it also improves digital penetration and increases customer confidence in the banking system.

Conclusion

Currently, three ombudsman systems have been introduced. These are the banking ombudsman scheme which was introduced in the year 1995, the ombudsman scheme for digital transactions which was introduced in the year 2019, and the ombudsman scheme for non-banking financial companies introduced in the year 2019. Complaints not covered by the ombudsman system are handled by the customer’s training and protection department. These cells are located in RBI’s 30 regional offices.