This article is written by Ayush Agarwal,  a student of UPES, Dehradun.

Banking had always been root of a country’s economy and people living in it. To safeguard money, to earn a little interest income, to buy things which one cannot pay at present (credit facility), to hook big transactions in a safe and secured way and with many endless facilities, bank holds the big responsibility. One can see the importance of banking from the fact that the Government had been trying to introduce schemes for the development of bank and people operating and transacting through it.

Reserve Bank of India was incorporated in India in year 1935 by Hilton Young Commission and was nationalized in the year 1949. RBI being the national bank of India had been rendering service as a regulator and a parent bank for all banks in India. All banks giving banking service are being regulated by RBI.

No service could run without flaws and consumer complaints in it. To address complaints, disputes and grievances consumer needs a forum. A consumer cannot address each issue to the overburden judiciary and cannot go for the hectic process of filing each issue and summoning the bank for to address it. There was a need a forum to address the issue of the consumers, where they can freely, without much cost and without any hectic process of filing complaints can get speedy answer to the issue of the bank.

With the object to address this issue RBI introduced THE BANKING OMBUDSMAN SCHEME, 2006 Scheme is introduced with the object of enabling resolution of complaints relating to certain services rendered by banks and to facilitate the satisfaction or settlement of such complaints.

Grounds of Complaint:

Bank ombudsman can only be invoked when the facts of the case are not complicated and they can be addressed without supervision of the court. Section 8 of the Scheme specifies grounds on which a Complaint can be filed, the Banking Ombudsman has jurisdiction over deficiencies in baking which includes internet banking or other services, are as under:

  1. Where there is non-payment or inordinate delay in the payment or collection of cheques, drafts, bills etc.;
  2. non-acceptance, without sufficient cause, of small denomination notes tendered for any purpose, and for charging of commission in respect thereof;
  3. non-acceptance, without sufficient cause, of coins tendered and for charging of commission in respect thereof;
  4. non-payment or delay in payment of inward remittances ;
  5. failure to issue or delay in issue of drafts, pay orders or bankers’ cheques;
  6. Banks are not adhering with the prescribed working hours.
  7. When bank fails to provide or delays in providing a banking facility (other than loans and advances) promised in writing by a bank or its direct selling agents;
  8. If there is a delay, non-credit of proceeds to parties’ accounts, non-payment of deposit or non-observance of the Reserve Bank directives, if any applicable to rate of interest on deposits in any savings, current or other account maintained with a bank ;
  9. There is a complaint from Non-Resident Indians having accounts in India in relation to their remittances from abroad, deposits and other bank related matters;
  10. Bank refuses to open deposit accounts without any valid reason for refusal;
  11. Bank levies of charges without adequate prior notice to the customer;
  12. Bank does not-adherence by the bank or its subsidiaries to the instructions of Reserve Bank on ATM/Debit card operations or credit card operations;
  13. non-disbursement or delay in disbursement of pension (to the extent the grievance can be attributed to the action on the part of the bank concerned, but not with regard to its employees);
  14. refusal to accept or delay in accepting payment towards taxes, as required by Reserve Bank/Government;
  15. refusal to issue or delay in issuing, or failure to service or delay in servicing or redemption of Government securities;
  16. forced closure of deposit accounts without due notice or withoutsufficient reason;
  17. refusal to close or delay in closing the accounts;
  18. non-adherence to the fair practices code as adopted by the bank;
  19. non-adherence to the provisions of the Code of Bank’s Commitments to Customers issued by Banking Codes and Standards Board of India and as adopted by the bank ;
  20. non-observance of Reserve Bank guidelines on engagement of recovery agents by banks; and
  21. any other matter relating to the violation of the directives issued by the Reserve Bank in relation to banking or other services.

Sub-section 2 lays down the grounds for the deficiency in baking service with respect to loans and advances. The jurisdiction will be as under:

  1. non-observance of Reserve Bank Directives on interest rates;
  2. delays in sanction, disbursement or non-observance of prescribed time schedule for disposal of loan applications;
  3. non-acceptance of application for loans without furnishing valid reasons to the applicant; and
  4. non-adherence to the provisions of the fair practices code for lenders as adopted by the bank or Code of Bank’s Commitment to Customers, as the case may be;
  5. non-observance of Reserve Bank guidelines on engagement of recovery agents by banks; and
  6. non-observance of any other direction or instruction of the Reserve Bank as may be specified by the Reserve Bank for this purpose from time to time.

What is the procedure of filing compliant?

Section 9 of the Scheme gives out the procedure of filing complaint with the Banking Ombudsman. Any aggrieved person, invoking above mentioned grounds can file a complaint in person or through an advocate. The complaint can be filed with Banking Ombudsman within whose jurisdiction the branch or office of bank complained against is located. The matters related to credit card and other type of centralized service, the jurisdiction of Banking Ombudsman is the billing address of the aggrieved person.

The complainant is required fill form (Annexure ‘A’ which can be accessed here) or filling an online application form which can be accessed here. The form needs to duly sign clearly admitting all circumstances, stating clearly:

  1. the name and the address of the complainant,
  2. the name and address of the branch or office of the bank against which the complaint is made,
  3. the facts giving rise to the complaint,
  4. the nature and extent of the loss caused to the complainant, and
  5. the relief sought for.

Limitations to the filing complaint with Banking Ombudsman are:

  1. If written complaint had been made with the bank and the bank had rejected the complaint or the complainant has not received any reply within the period one month after the bank received his representation or the complainant is not satisfied with the reply given to him by the bank.
  2. If no reply had been received from the bank against the written complainant then complaint can be filed after one month of making complaint and within one year of filing complaint and if reply had been given then complaint can be filed within a year of making written complaint.
  3. The same cause of action should not have raised with any court, tribunal or arbitrator or any other forum.
  4. The complaint is not frivolous or vexatious in nature; and
  5. The complaint is made before the expiry of the period of limitation prescribed under the Indian Limitation Act, 1963 for such claims.

Award by Banking Ombudsman:

  1. If the matter is not settled within one month of filing complaint with the Banking Ombudsman, the Banking Ombudsman may allow parties to make representation to award or reject the complaint.
  2. The award shall state briefly the reasons for passing the award.
  3. The award be passed stating loss suffered by the complainant. The award cannot be more than actual loss suffered by the complainant as a direct consequence of the act of omission or commission of the bank, or ten lakh rupees whichever is lower.
  4. In the case of complaints, arising out of credit card operations, the Banking Ombudsman may also award compensation not exceeding Rs 1 lakh to the complainant, taking into account the loss of the complainant’s time, expenses incurred by the complainant, harassment and mental anguish suffered by the complainant.
  5. The bank shall, unless it has preferred an appeal under sub. clause (1) of clause 14, within one month from the date of receipt by it of the acceptance in writing of the Award by the complainant under sub-clause (8), comply with the Award and intimate compliance to the Banking Ombudsman.

The list of Banking Ombudsman in India can be found here. One can file complaint with the local Banking Ombudsman by making online application or written complaint. Now access to the relief had been made easy and one should avail the benefit without any delay.


  1. Oh. Its an amazin article. I have been looking around for this information. Thanks for the detailed information. It is truely helpful. Keep posting more. Thanks.

  2. Dear sir,
    With respect I would like to inform you that I took Education Loan of Rs 42 lakhs from Oriental Bank of commerce on July 2018.
    Only Rs 12 lakhs was paid .
    Bank demand Interest money during study period if you won’t pay then we stop paying your next payment which is on December 2018 which is not included in RBI guidelines and also forced to take life insurance which we won’t require.
    Plz take necessary steps Otherwise I will be committed Suicide.

    With regards
    Sanjay Raj
    2nd year MBBS Student

  3. I am Baljeet Singh working in chandigarh from last 4 months I am married and staying with My family my son and my child he is 4 years old nd My salary is 21000 in hand after deduction my salary is 19500 in hand and my salaried account is in Yes Bank and need urgent personal loan and i tried in salaried bank because i take money from some one on interest and i want to pay them all thats why i need loan but and they told me that i am not Elegible for loan because for loan their Eligibility Cretieria is 25000 salary per month than i tried in other bank same of the bank want 30k and some of the banks Loan Elegibility crftieria is 25k it means we don’t have right to take loan becaause of less salary tell me sir is our fault that our salary is less and another thingh that banks can do with a low salary person they are showing 11 to 12 % of Rate but they are geting the loan when ever they Calcuated they charged rate of interest 18 to 20% and if Persona salary is 30k or 40 K than they charged 10 or 11% Rate of interest what is this sir.its means that poor peoply dont have right to live in india sir i need 280000 af loan for 5 years and i am very janune man living in india from last 35 years kindly look into this matter and do the needful for that peoples who are living in city and they don’t have their land only they have 2 rooms or one bedrooms and are doing private job and they are geting only 10 to 15 thousand monthly salary atleast farmers have their their own land what a common man is daying because less salary and didn’t get help even frm a simple person. sir it is and humble request kindly look into this matter as soon as possible WIth Regard’s Baljeet Singh Email Id [email protected]

  4. Dear sir
    my dad neft me 550 rs on 8 th march and due to low balance bank deducted all my money 550 rs as i m jobless and no money to buy food and bank take all my money that is just 550 rs how they can do like this to a unemployed person. now i want my 550 rs back as no one is there to help me my dad is also retired from sbi and he is senior citizen and my account is joint with my dad my account no is 20052221918 pls provide me solution


  5. I would like to file a complaint against private Preschool,
    Issue was – My Kid kept unattended and forced them to sit quiet for hours. He was brutally beaten couple of times.Poor food hygiene and unhealthy eating habits was a big risk factor for all the kids. my kid was seriously sick due to viral and unhealthy class environment. I lodged police complaint but no use.
    Owner Anita of Freewings Pre school ignoring my all complaints at 22, Manamandir Housing Society, Pimple Saudagar, Pune
    Can I file complaint in Consumer court without any Video proofs?

  6. Ref No: Loan Account no BF3C003094 (Consumer durable Loan)

    I have not taken any loan but my name is updated in CIBIL record by Kotak Mahindra Bank.
    I started getting a call in the month of August 2016 from Kotak Mahindra bank posing as a third party recovery agent for Bajaj finance Ltd ,stating that I have taken a consumer durable loan (Washing Machine) on 17th Jan 2012, from Vijay Sales Thane West.
    I enquired with Bajaj Finance Ltd for the above issue via mail and they replied via mail that my name is not updated by them in CIBIL record.
    As per Kotak Mahindra Bank I have an outstanding amount of Rs 57841/- showing in negative account and which is also updated in CIBIL record by the bank.
    As per Kotak Mahindra Bank I have not paid a single EMI, if I have not paid any EMI why the Kotak Mahindra Bank did not approach me immediately & why they did not seize the washing machine but they waited till 2016.
    I would like to see the loan agreement, PDC cheque and the detail of my bank transaction.
    Also the delivery challan copy signed by me or my family member.
    This is totally fraudulent practice on the Bank part without any reason my name is registered with CIBIL.
    Because of the fraudulent act of Kotak Mahindra Bank my CIBIL score has come down due to which my loan is rejected and has given me mental agony.
    I don’t want them to remove my name from CIBIL but want the Loan agreement copy, Bank Branch and also details of the details of bank transcation for subject loan account.
    I have written mails to Kotak Mahindra Bank several times at [email protected] , [email protected] also registered my complaint on their online portal which does not give any complaint no nor anybody from bank bothers to contact the customer.

    Anand Nadar

  7. Your comment is awaiting moderation.
    I am student by profession .I was saves some money in my acvounts for fees but it was withdrwal by frudster cyber crime without gaving my atm card and pin no to any other person.I have a saving ac in canara bank bel balbhadrapur 246149 kotdwar uttrakhand ac no 2933108003803 from this ac rs 10,000 is withdrwal fraud on prevoius date 26/06/16. I also not receive msg alert of this transaction. I know it when I withdrawl amount my self on 04/07/16 after transaction I see direct 10,000 less then next day 05/07/16 I go to branch and entry passbook but it cames unknow entry of 10,000 to me I say it to manager I not withdrawl this amount and not gave my atm card and pin no to to any other they say write application I do but my two months rounds continue to bank they do nothing. At last they say go to police I also complaints to police but nothing do any not bank not year going on I do all possibilities as I possible I also waste my extra money but nothing progress.wrost bank service of canara bank bel branch how posdible to digital india in this ciber crimes no ones takes responsibilties not bank s not police so ciber crime is increases I wants that I not get my amounts but the ciber criminals get catched that they not do again that fraudster ti any others poor citigens.please look into

  8. The list of Banking Ombudsman in India can be found here. One can file complaint with the local Banking Ombudsman by making online application or written complaint.
    after reading through some of the post I realized it’s new to me. Anyways, I’m definitely delighted I found it and I’ll be book-marking and checking back often!
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  9. Dear Sir

    We purchased shares from Emmerging securities via HSBC bank in 1997 ( 50 numbers elaince industires ) , we have received physical shaare certificate of the same and when we wanted to transfer to the desired name , HSBC made a objection that in sufficient stamps are attached and hence transfer did not happened , now HSBC has not returned our Money neither transfered the shares

    However these shares were Dematerilized in absence of Physical share certificate and now Bank is not ready to return our Money or shares

    We had given Bank enough Papers and talked to there banking officers were they assure that they will return our shares with all dividends and bonus but in Practical it has not happened

    We need support to make it happen


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