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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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Customer Due Diligence, KYC Policies and Some Important Relationships Between Banker and Customer

  • Some legal Relationships between Banker and Customer
Debtor-Creditor
Creditor-Debtor
Mortgagor-Mortgagee
Bailee-Bailor
Trustee-Beneficiary
Lessee-Lessor
Pricipal-Agent

  • Approach of KYC as per RBI guidelines is
    • To prevent bank from being used, intentionally or unintentionally, by criminal elements for their money laundering activities
    • To help banks to know their customer and their financial transactions better.
  • KYC Policies laid down by RBI
    • Customer Acceptance Policy (CAP)
    • Customer Identification Process
    • Monitoring of Customer Transactions
    • Risk Management
  • Customer Due Diligence – It can be defined as any measure undertaken by a financial institution to collect and verify information and positively establish the identity of customer. Board approved customer acceptance policy is the base of CDD. Three Types of CDD –
    • Basic Due Diligence
    • Simplified Due Diligence
    • Enhanced Due Diligence

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