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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 ...
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Retail Banking - > Reverse Mortgage

Reverse mortgage is a loan scheme in which house owner of age 60 and above can avail the regular cash flow from bank by mortgaging his house if he is living in the same house.

The Reserve Bank of India has formulated the following guidelines for a reverse mortgage-

  • Maximum loan amount would be up to 60% of the value of the residential property.
  • Maximum tenure of the mortgage is 15 years and minimum is 10 years. Some banks are now also offering a maximum tenure of 20 years.
  • Option of monthly, quarterly, annual or lump sum loan payment.
  • Property revaluation to be undertaken by the lender once every 5 years.
  • Reverse mortgage interest rates could be either fixed or floating
  • It will not attract any tax

Criteria

  • House owners should be above the age of 60 years. If spouse is a co-applicant, then she should be above 58 years.
  • Owners of a self-acquired, self-occupied residential house or flat, located in India. The titles should be clear, indicating the prospective borrower's ownership of the property.
  • Property should be free from any encumbrances.
  • The life of the property should be of minimum 20 years.
  • Property should be the permanent primary residence of the individuals.

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