Integrated Ombudsman Scheme of RBI

Why in news

• Prime Minister Narendra Modi on November 12 launched the integrated ombudsman scheme of RBI to provide a simpler single-window redressal mechanism for customers of RBI-regulated entities such as banks, finance companies and payment service providers.

What is the integrated ombudsman scheme?

• The integrated ombudsman scheme amalgamates three ombudsman scheme of RBI - banking ombudsman scheme of 2006, ombudsman scheme for NBFCs of 2018 and ombudsman scheme of digital transactions of 2019.
• The unified ombudsman scheme will provide redress of customer complaints involving deficiency in services rendered by RBI regulated entities viz. banks, NBFCs and pre-paid instrument players if the grievance is not resolved to the satisfaction of the customers or not replied within a period of 30 days.
• The new scheme also includes non-scheduled primary co-operative banks with a deposit size of Rs 50 crore and above.
• The integrated scheme makes it a “One Nation One Ombudsman’ approach and jurisdiction neutral.

Why was this required?

• One of the primary concerns regarding the existing ombudsman mechanism was the lack of maintainable grounds on which the consumer could challenge the actions of a regulated entity at the ombudsman or a rejection of the complaint on technical grounds, resulting in a preference for the consumer court notwithstanding the extended timelines for redressal.

What are some of the features of the scheme?

• According to RBI, it will no longer be necessary for the complainant to identify under which scheme he/she file complaint with the ombudsman.
• The scheme includes a wider definition of deficiency of services which ensures complaints will not go unaddressed or rejected simply on account of “not covered under the grounds listed in the scheme”.
• The scheme is jurisdiction neutral and a centralised receipt and processing centre has been set-up in Chandigarh for initial handling of complaints in any language.

Who would be the final appellate authority?

• RBI’s Executive Director-in charge of Consumer Education and Protection Department would be the Appellate Authority under the integrated scheme.

PRELIMS QUESTION

With reference to ‘Integrated Ombudsman Scheme of RBI’, consider the following statements:

1. The scheme covers non-scheduled primary co-operative banks with a deposit size of Rs 50 crore and above.

2. National Consumer Disputes Redressal Commission acts as the Appellate Authority under the scheme

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer