Updated By: LatestGKGS Desk
About RBI’s Internal Ombudsman Scheme: Details, Aim, Purpose, Highlights
About RBI’s Internal Ombudsman Scheme: Details, Aim, Purpose, Highlights
Reserve Bank of India (RBI) recently notified all scheduled commercial banks with more than 10 branches to appoint an Internal Ombudsman. However, Regional Rural Banks were excluded from its directive.
About Ombudsman: An ombudsman is a person officially charged with investigating and addressing public complaints or violation of rights.
The Internal Ombudsman Scheme covers appointment and tenure; roles and responsibilities; procedural guidelines and oversight mechanism for the Internal Ombudsman.
All Scheduled Commercial Banks in India having more than 10 banking outlets are required to appoint IO in their banks.
The IO will examine customer complaints referring to the deficiency in service on the part of the bank that is partly or wholly rejected by the bank.
The customers of banks need not approach the IO directly as the banks themselves will escalate all complaints internally, which are not fully redressed to their respective IOs before conveying the final decision to the complainant.
The implementation of IO Scheme, 2018 will be monitored by the bank’s internal audit mechanism apart from regulatory oversight by RBI.
