What is Grievance Redressal?
Grievance Redressal is the process of resolving complaints that a customer has against their bank or financial institution. Every bank must have a system in place to listen to and resolve customer issues fairly and promptly. The RBI has created the Ombudsman scheme as the next level of this process if the customer is not satisfied with the bank’s resolution.
The RBI Integrated Ombudsman Scheme, 2021
This is the most important part of the topic. The RBI launched this scheme in 2021 to simplify and streamline the complaint resolution process for bank customers.
- Key Concept: The scheme is based on a ‘One Nation, One Ombudsman’ approach.
- It merged three previous ombudsman schemes (for banking, for NBFCs, and for digital transactions) into a single, unified scheme.
- Main Goal: To make the grievance redressal process easier, faster, and more effective for customers, regardless of where they are in India.
How to File a Complaint: The Step-by-Step Process
A customer cannot go to the Ombudsman directly. They must follow a specific process.
Step 1: Complain to the Bank First
- You must first file a written complaint with the bank itself.
- The bank has a maximum of 30 days to resolve your issue.
Step 2: Approach the RBI Ombudsman
You can escalate the complaint to the RBI Ombudsman only if:
- The bank rejects your complaint.
- You are not satisfied with the bank’s reply.
- The bank does not reply within 30 days.
How to file a complaint with the Ombudsman?
- Online Portal: The single, easiest way is through the online portal: cms.rbi.org.in (Complaint Management System).
- Email and Physical Letter: Complaints can also be sent via email or a physical letter to a centralised processing centre in Chandigarh.
Grounds for Filing a Complaint
A complaint can be filed for any deficiency in service. Some common grounds include:
- Unreasonable delays or refusal to provide banking services.
- Charging excessive fees or commissions without notice.
- Issues related to ATMs or Debit/Credit Cards.
- Problems with mobile or electronic banking.
- Non-payment or delay in payment of inward remittances.
- Failure to follow RBI directives on interest rates.
- Complaints related to loans and advances.
When can a complaint be rejected?
The Ombudsman can reject a complaint if:
- You have not approached the bank first.
- The complaint is about a matter that is already pending in a court or tribunal.
- The complaint is frivolous or vexatious (made purely to harass).
- The complaint is made more than one year after you have received a reply from the bank.
Summary
The Grievance Redressal mechanism is a two-step process for customers. First, you must complain to your bank. If the issue isn’t resolved within 30 days or the resolution is unsatisfactory, you can then escalate it to the RBI Integrated Ombudsman. This scheme provides a single, easy-to-access platform for resolving a wide range of complaints against banks, NBFCs, and payment system providers, ensuring that customer rights are protected.
Quick Revision Points
Cost: The entire process is free of cost for the customer.
First Step: Always complain to the bank first.
Time Limit for Bank: The bank has 30 days to resolve the complaint.
Escalation: If not resolved, approach the RBI Ombudsman.
Scheme Name: RBI Integrated Ombudsman Scheme, 2021.
Key Concept: ‘One Nation, One Ombudsman’.
How to Complain: The primary method is the online portal cms.rbi.org.in.
Time Limit for Ombudsman: You must complain to the Ombudsman within one year of receiving the bank’s final reply.