Feeling short-changed by your bank? Complain to the banking ombudsman

Have you ever been in a tussle with your bank’s services? It is quiet common to face such situations at some point of time. Complaints against banks can happen on anything like delay in cheque clearance, issuance of unsolicited credit cards and insurance policies, recovery of premium charges, charging of annual fee in a ‘free’ card, issuance of loans over phone, disputes over interest rates, wrong billing, and money not being dispensed at ATMs, non-settlement of insurance claims or even misbehavior of employees.

If you have a complaint against a nationalised bank, private bank or a cooperative bank, you can get it redressed. But many of us do not take a pain to pursue complaints. It may be because we are not aware of our rights or the fact that there is a detailed “Code of Commitment to Customers”, which sets a minimum standard of banking practices while dealing with customers.

How to fix your complaint
Complaint registration: Approach the bank through phone / mail or visit the concerned branch personally to bring the matter to their notice and to get the required solution. Register a complaint in writing and get a written acknowledgement.

Escalation: Once a complaint has been registered, the bank is supposed to respond to it within a week’s time. If they are not responding, or if you did not get a satisfying reply, you can approach the regional office or regional grievance reddressal officer. If the bank seeks more time to resolve the issue, give a maximum of 30 days, if their reason is justifiable. This period can vary from case to case.

As directed by the Reserve Bank of India (RBI), every bank has to appoint a Nodal Officer for redressal of customer grievances.
Banking ombudsman: The banking ombudsman is a senior official appointed by RBI to redress customer complaints against deficiency in banking services. This system has been launched by the RBI to the banking grievance redressal. It works as an intermediary between the bank and the customers trying to bring both the parties to a settlement on the issue within a month.

If the bank is not responding within the committed period, or if you are not satisfied with the resolution, you can approach the banking ombudsman. The intimation can be made online, by post or by a personal visit. Ensure that you have all necessary documents to substantiate your claim. The banking ombudsman will provide a solution in consultation with the bank, or may reject your application if it is invalid or in complete.

There is a tendency to go directly to the ombudsman instead of approaching the bank first. It’s not a good practice. The set procedures should be followed while registering a complaint. 
Ombudsman will accept the complaint only if it is made within a year of the incident. Also, the ombudsman is not empowered to impose penalty to banks, but can only order redress of the complaint.

Some areas of the bank’s operations like complaints about misbehaviour or forgery done by banking staff are outside the jurisdiction of the ombudsman. Misbehaviours are to be handled by the branch / regional in-charges while cases of forgery / dishonesty comes under Sec. 420 in courts.

Appellate authority:  If you are not satisfied with the decision passed by the banking ombudsman, you can approach the Appellate Authority of the banking ombudsman. Appellate Authority is vested with a deputy governor of the RBI.

Consumer court: A consumer forum, consumer court or a civil court is the last place to reach to get justice for your complaints. You can file a petition in person or through an authorised agent via registered post only. It should contain all facts, supporting documents and contact credentials in an orderly manner. The jurisdiction of the complaints is determined by the facts of the case and where the cause of action arises. The customer needs to serve a notice to the concerned bank before going to the consumer forum.

The ombudsman scheme makes it mandatory for every bank to display information about its grievance redressal system at its branches and website along with the address of the regional banking ombudsman.

Prevention better than cure
Though there are genuine cases where customers have suffered due to a bank’s fault, in many cases, a lack of awareness of the customer has caused grievances. Always read the MITC (most important terms and conditions) brochure or agreements in case of loans before purchasing a product.

Always ask as many questions as possible before buying a product and ensure that you actually need it.

The main object while making complaints is to get it resolved at the earliest. Therefore, it is very important to address the appropriate person to resolve the problem effectively.

The writer is CEO of BankBazaar.com, an online marketplace for personal, home and car loans