The Reserve Bank – Integrated Ombudsman Scheme is being seen as a customer-friendly move, which experts said will help address grievances in a hassle-free manner.
Anjana Potti, Partner, J Sagar Associates, saidthat while the banking ombudsman has been in place since 1995, the system was always viewed askance by consumers.
“One of the primary concerns 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,” Potti said.
The scheme was launched in virtual mode by Prime Minister Narendra Modi on Friday.
“‘One nation one ombudsman’ is an excellent example of how RBI is adopting technology and digital capabilities for championing consumers’ interests and their financial protection. With this one move, RBI has changed the concept from ‘pillar to post’ feeling of the consumers to ‘click to post’ complaints,” said Srinath Sridharan, senior corporate leader and Member of Governing Council - Fintech Association for Consumer Empowerment.
Financial inclusion
It will also enhance consumer confidence in the formal financial products and to add depth to financial inclusion, he said.
Anand Kumar Bajaj, Founder, Managing Director and CEO, PayNearby, said it puts in place a robust mechanism driving simplicity and transparency for complaints, redressal and dispute resolution.
“The Ombudsman scheme will go a long way in enhancing customer confidence,” he said.
It will ensure availability of grievance redressal mechanism for effective resolution of customer complaints related to regulated entities, said Chandrajit Banerjee, Director General, Confederation of Indian Industry.
RBI Governor Shaktikanta Das said the scheme will reinforce confidence and trust in the financial system.
Significantly, the scheme not only integrates the three existing Ombudsman Schemes, but will now also include under its ambit Non-Scheduled Primary Co-operative Banks with a deposit size of ₹50 crore and above.
The scheme seeks to provide cost-free redress of customer complaints involving deficiency in services rendered by entities regulated by RBI, if not resolved to the satisfaction of the customers or not replied within a period of 30 days by the regulated entity.