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BANKING OMBUDSMAN AND ITS ROLE

  The Banking Ombudsman is an authority created by the Reserve Bank of India (RBI) to address customer grievances regarding banking services. It provides a cost-free, quick, and impartial resolution process for complaints against banks.  Customers can file complaints if they are dissatisfied with the services of a bank or have not received a satisfactory response from the bank within 30 days of lodging a complaint. Complaints given to Ombudsman Cover  -  Non-payment or delay in payment of cheques, drafts, or bills. Issues related to loans or advances. Non-adherence to fair practices code. Unauthorized debits or service charges. Complaints regarding internet banking or mobile banking. Delay in providing banking services. Unauthorized ATM withdrawals. Wrongful Charges. Ombudsman cannot accept complaints those are  handled by a court, tribunal, or arbitrator. Cases older than one year from the cause of action also do not entertained by Ombudsman.  How to File ...

Retail Banking – > Lender’s Appraisal Procedure

Three major phases of loan origination –
Information Acquisition – Banks collect fees for processing, documentation and administration from customer.

Credit Appraisal and Sanction – Credit officer scrutinize the information made available to them and arrive at the loan eligibility and fix the terms and conditions to be offered to the customer. Two key techniques are used for this purpose. i) Confirming that the customer satisfies the basic norms an policies ii) By applying weighted risk based credit scoring

Disbursement – Either a cheque for the sanctioned amount is issued to the customer or the amount is transferred to the customer account. A repayment schedule stating the amortization is prepared for the customer.

  • ·         Both fixed rate loans and floating rate loans may be offered.
  • ·    The house/ flat should be insured against the risk of fire/ riots/ earthquake / lightening floods etc.
For More Related Topics Click on
Moratorium
Power of attorney
Equated Monthly Installment (EMI)
Check-off Facility
Loan Repayment through Post Dated Cheques (PDCs)

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