Top
News Updates

Banking Ombudsman Gets More Teeth: Mobile And Electronic Banking Brought Under Purview [Read The Amended Scheme]

Aasavri Rai
24 Jun 2017 4:04 PM GMT
Banking Ombudsman Gets More Teeth: Mobile And Electronic Banking Brought Under Purview [Read The Amended Scheme]
Your free access to Live Law has expired
To read the article, get a premium account.
    Your Subscription Supports Independent Journalism
Subscription starts from
599+GST
(For 6 Months)
Premium account gives you:
  • Unlimited access to Live Law Archives, Weekly/Monthly Digest, Exclusive Notifications, Comments.
  • Reading experience of Ad Free Version, Petition Copies, Judgement/Order Copies.
Already a subscriber?

The Reserve Bank of India has widened the scope of its Banking Ombudsman Scheme 2006, to include, inter alia, deficiencies arising out of sale of insurance/ mutual fund/ other third party investment products by banks.

Under the amended scheme, a customer would also be able to lodge a complaint against the bank for its non-adherence to RBI instructions with regard to mobile banking/ electronic banking services in India.

The pecuniary jurisdiction of the Banking Ombudsman to pass an award has been increased from existing Rs. 10 lakh to Rs. 20 lakh.

Compensation not exceeding Rs. 1 lakh can also be awarded by the Banking Ombudsman for loss of time, expenses incurred, as also harassment and mental anguish suffered by the complainant.

The procedure for complaints settled by agreement under the scheme has also been revised.

An appeal has now been allowed for complaints closed under Clause 13 (c) of the existing scheme relating to rejection, which was not available earlier. The Reserve Bank released the notification on June 16 and it lists amendments to the scheme that provide for non-adherence to RBI instructions on ATM / debit card / credit card/ prepaid card operations and mobile banking/ electronic banking services in India by the bank or its subsidiaries or on para-banking activities like sale of insurance / mutual fund /other third party investment products by banks, among other things.

The amended scheme shall come into force on July 1.


Read the Amended Scheme Here

 

Next Story