The number of complaints received by the Banking Ombudsmen increased by 15 per cent in FY2009-10 to 79,266, compared with 69,117 complaints received in 2008-09, according to the latest Annual Report of the Banking Ombudsman Scheme released by the Reserve Bank of India, on Tuesday.
Banking Ombudsmen offices in Chennai accounted for the maximum receipt of complaints (16.10 per cent), followed by New Delhi at 15.20 per cent, Mumbai at 13.7 per cent and Kanpur at 9.9 per cent.
The Reserve Bank of India introduced the Banking Ombudsmen Scheme in 1995, to provide an expeditious and inexpensive forum to bank customers for resolution of their complaints relating to deficiency in banking services provided by commercial banks, regional rural banks and scheduled primary co-operative banks. There are 15 Banking Ombudsman offices across the country.
Credit card-related complaints at 24 per cent of the total complaints formed a significant proportion, followed by complaints relating to ‘Failure to meet commitments made' (non-adherence to fair practices code as adopted by banks) at 15 per cent, according to the Annual Report of the Banking Ombudsmen Scheme. Complaints related to loans and advances at 8 per cent, remittance-related complaints (7 per cent), deposits-related complaints (5 per cent), pension-related complaints (6 per cent).
Using the feedback received from Banking Ombudsmen , the RBI asked agency banks to pay compensation at Bank rate plus 2 per cent penalty for delay in payment of pension dues. It advised them to pay compensation of Rs 100 a day to the complainants for delay in resolving complaints in respect of failed ATM transactions.
Further, the RBI directed banks to issue no-due certificates in all cases resolved through Banking Ombudsmen's intervention within a week of reaching such settlement, and also suitably modify records of Credit Information Bureau of India Ltd.