Direct Tax
Consulting
ESG Advisory
Indirect Tax
Growth Advisory
Internal Audit
BFSI Audit
Industry Audit
Valuation
RBI Services
SEBI Services
IRDA Registration
AML Advisory
IBC Services
NBFC Compliance
IRDA Compliance
Finance & Accounts
Payroll Compliance Services
HR Outsourcing
LPO
Fractional CFO
General Legal
Corporate Law
Debt Recovery
Select Your Location
The article is about the RBI grievance redressal mechanism in Banks for which a framework has been notified. The RBI released notification dated 27th January 2021 about the change in banks’ mechanism of grievance redressal.
The Notification 2020-2021/1002 has been issued by RBI- as a framework which comprises of a) the increasing disclosures on complaints should be made by the Banks from the customers, b) to lay down the –recovery of cost redressal which comprises of -maintainable complaints from the banks against whom the number of complaints has been received in the Office of Banking Ombudsman (OBO). Such complaints were received in excess compared to the average complaints against the banks to the Ombudsman, c) that the RBI[1] has issued the intensive review of the grievance redress mechanism of banks having persisting issues in their redress mechanism.
Clarification in the Notification
It has been clarified by RBI- that the RBI grievance redressal mechanism, will continue to be free of cost for the customers of the banks and members of the public.
The Ombudsman system is the grievance redressal of the Bank. In case the Bank is unable to take action, the customer can raise the issue with the Internal Banking Ombudsman of the relevant Bank. The RBI has taken steps to strengthen the Internal Ombudsman and making them more independent authority. Even though the banks have internal grievance system along with an internal ombudsman, still many complaints remains unresolved and reaches the external ombudsman.
So, in reality, the internal Ombudsman of the Bank is the internal checker of customers complaints.
The statement sets out the various developmental and regulatory policy measures, which also speaks about the regulation and supervision, under which, the Grievance Redress Mechanism, has been discussed:
The statistics in the below data shows the rise of the RBI grievance redressal mechanism and the Ombudsman redressing it:
The importance of the RBI grievance Redressal mechanism is of utmost importance cause of the following:
It can be concluded that RBI grievance redressal mechanism is necessary to retain and sustain the customers’ confidence and trust in the banking system. The supervisory function of the Bank is essential at the time when the economy is suffering and recovering from the pandemic. Enterslice can provide the support for same.
Read our article:RBI introduces the Co-Lending Model between Banks & NBFCs
On June 08, 2023, the Reserve Bank of India issued guidelines on default loss guarantee on thei...
The gaming industry in India has made a remarkable transformation in iGaming in the year 2023;...
A company needs cost-effective financial management for overall survival and growth. This invol...
Automotive industry audit checklist as the process audits is made simpler and generates better...
An Automotive Dealerships Audit Checklist helps in an examination and review of aspects related...
Are you human?: 4 + 7 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
Recently the Reserve Bank of India came out with a notification to impose restrictions on investments in Non-Bankin...
17 Apr, 2021
The Reserve Bank of India recently revamped the regulatory restrictions on loans and advances by banks to directors...
28 Jul, 2021