“Customer complaints are like school books from which we learn.”
The purpose of a business is to create a customer who makes more customers. Customers are precious; it takes months to find a new customer, seconds to lose one. Almost 70% of complaining customers continue to do business with the existing Bank if the complaints resolve amicably. Said JC Penny, the master retailer, “Courteous treatment will make a customer a walking advertisement.”
With such an important role played by a customer as a participant in nation-building, the Reserve Bank of India – has revamped the Grievances Redressal System of Banks and renamed as the Integrated Ombudsman Scheme. RBI has launched a new scheme called Integrated Ombudsman Scheme, 2021. It is a Free Cost redressal system for the customers of Banks and Financial Institutions. This Scheme is under the One Nation One Ombudsman.
The Scheme integrates the three ongoing Ombudsman schemes of RBI:
a. Banking Ombudsman Scheme, 2006;
b. Ombudsman Scheme for NonBanking Financial Companies,
c. Ombudsman Scheme for Digital Transactions, 2019.
The Scheme improves the grievance settlement mechanism of customer complaints against RBI-regulated institutions such as Banks, NBFCs, and payment service operators. The Banking Ombudsman Scheme launched in 1995 has undergone five revisions and forms the basis for establishing the Ombudsman Scheme for Non-Banking Financial Companies (OSNBFC) in 2018 and the Ombudsman Scheme for Digital Transactions (OSDT) in 2019.
Ombudsman is a Statutory organization for customers to escalate complaints if the banker fails to rectify the mistake within a month. Despite repeated requests to bank officials, when customers are not satisfied with Bank’s steps, they have the prerogative to approach the Ombudsman. The Appellate Authority is the sitting Executive Director in charge of the Consumer Education and Protection Department of RBI.
The central theme of the ombudsman scheme is based on ‘One Nation-One Ombudsman’ with one address, one email, and one portal for the customers to lodge their complaints. There is a single point of reference for customers to file their objections, submit the documents, track status, and provide feedback. It is all the more essential now to remember that the competitor bank is only one mouse click away for the customer in the internet world.
To get financial grievances addressed, the customer will no longer have to chase different entities regulated by RBI; a single point of reference to file complaints, submit documents, track complaints’ status, and receive feedback has been created. A Centralised Receipt and Processing Centre (CRPC) is set up to handle all complaints to move towards a ‘One Nation-One Jurisdiction’ approach. It is a welcome initiative to integrate the three existing schemes. The Ombudsman Scheme also covers Non-Scheduled Primary Co-op Banks with a deposit base of Rs 50 crore and above.
The jurisdiction of the individual territory of each ombudsperson has been dispensed with now. Bank Officer in the rank of a General Manager in a Public Sector Bank or equivalent, designated as the Principal Nodal Officer, is responsible for representing the Bank and furnishing information regarding complaints filed by customers.
The Bank has no right to appeal in cases where the Ombudsman issues an Award against it, ex-parte for not producing timely response through relevant papers. To file a complaint online, the customer can visit the website https://cms.rbi.org.in or send your complaint through the dedicated email to email ID CRPC@rbi.org.in. The customer can send a written complaint, to ‘Centralised Receipt and Processing Centre’ Reserve Bank of India, Sector 17, Chandigarh – 160017 at the link :
https://rbidocs.rbi.org.in/rdocs/content/pdfs/RBIOS2021_121121.pdf
The turn-around time (TAT) for resolving the complaint has been reduced to one month, to comply in two years in a phased manner. The salient features of the Scheme are: Anonymous complaints can not be filed, but a complainant doesn’t need to identify under which Scheme a complaint is filed. Inadequate service is the main ground for lodging a complaint. Complaints are not rejected because “not covered under the grounds listed in the scheme. The step shall increase consumer awareness and transparency. There is only one Ombudsman with entire India as One Nation, One Ombudsman.
Rightly said,” Customers do not expect you to be perfect; they do expect the things to be fixed when they go wrong .”
About author
Mr. Hargovind Sachdev is an Ex-Banker, GM(Retd) of State Bank of India. Has over 39 years of experience in banking, having occupied senior positions in UCO Bank, United Bank of India, State Bank of Patiala, State Bank of Travancore & State Bank of India where he headed the Central European Credit Desk at Frankfurt, Germany from 2006 to 2011 covering 15 countries of Central Europe. Has undergone International Banking Training from Asian Institute of Management, Manila, the Philippines in the Year 2003 and a Multi-currency lending-technique training at the Euro Money Institute, London in 2009.
He has specialisation in Credit, Foreign Exchange, Vigilance, Monitoring & appraisal of Corporate Loans, MSME Credit, Gold Loans, Agricultural Loans & NRI Business Management in assets & liabilities. As a Forensic Auditor, he has conducted various Transaction Audits allotted by Banks.
He was felicitated by the Central Vigilance Commissioner, Sh. C.V Chowdhry for winning first prize for best article on Preventive Vigilance in 2015. He is also an accomplished Public Speaker having conducted multiple Motivational Seminars for institutions like ONGC, the National Housing Bank & the Bank of Baroda. He is an Independent Director & consultant to various big entities in the corporate sector at present.
