banking ombudsman scheme · 2013-11-11 · banking ombudsman scheme . why do complaints arise?...
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Banking Ombudsman Scheme
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Why do complaints arise?
Challenges today in banking
Banking services changes in the way service is delivered
Multiple agencies
shifting loyalties of staff and customers
Risks of frauds
Delivery channels New channels pose challenges as well as opportunities
Demanding customers
Financial inclusion
Technology and customer mismatch
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Nature of deficiencies listed under the scheme
Possible solutions ◦ Amicable settlement ◦ Award
Implementing the Award
Implications of not implementing the Award
◦ Rejection categories of rejection
◦ Process of Appeal Decision of the Appellate Authority
What happens next?
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References for BO ◦ Handbook of procedure ◦ Regulatory instructions from RBI ◦ IBA Model Compensation Policies ◦ Bank’ ◦ BCSBI Code of Commitments- Customers and for MSME
Principles of Natural Justice
Summary process ◦ Implications ◦ Approach ◦ Non judicial process as ADR
Personal hearing Issue of Orders
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Broad categories of complaints ◦ ATM Debit card ◦ Credit Cards ◦ Net Banking ◦ Cheques for collection ◦ Service charges ◦ Home Loans ◦ Pensions ◦ Remittances ◦ CIBIL reporting ◦ Other issues
Misbehaviour Sanction of loans Exchange of notes
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Failed transactions
Card not used
Card used no money dispensed but account debited
ATM used , cash dispensed partially
Use of ATM for POS transactions
Issue of pure ATM cards
Compensation for failed transactions
Availability of CCTV footage
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Credit card account debited when not used
Charges levied for transactions not done
Balance transfer rates
Misuse of cards
Use of cards for net based transactions
Use of cards for overseas transactions
Charges for upgrading of cards
Grant of rewards for use of cards
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Fraudulent Remittances using net banking ◦ Small value multiple debits
◦ Siphoning of monies from the account
Not granting Access for net banking
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Theft of cheques and fraudulent encashment ◦ Case studies from our Reports
◦ Determining the liability- Approach taken by the office
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AQB and AMB charges
Changes in the charges without proper notice
What constitutes proper notice ◦ As per Bank’s procedure
◦ As per BCSBI Code of Commitments
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Fixed rate vs Floating rate
Prepayment penalties
Change in Margins
Other issues
Number of Instalments vs Amount of Instalment
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Misbehaviour
Sanction of loans
Exchange of notes
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◦ Procedures followed by banks
◦ Prescriptions by the regulators
◦ Customer education