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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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Some Important Points from RBI Master Circular 2015 for AML-KYC certificate exam

·       *  Objective of KYC/AML/CFT guidelines is to prevent banks/FIs from being used intentionally or unintentionally, by criminal elements for money laundering or terrorist financing activities.
    
     *  Bank/FIs should frame their KYC policies incorporating the following four key elements –
o   Customer Acceptance Policy (CAP)
o   Customer Identification Procedure (CIP)
o   Monitoring of Transactions
o   Risk Management

  • Maintenance of KYC documents and Preservation of records
    • Maintenance of Records as per PML rules, 2005
      • All cash transactions of the value more than Rs. 10 lakh or its equivalent in foreign currency
      • Series of all cash transactions individually valued below 10 lakh or its equivalent in foreign currency done within a month and monthly aggregates which exceeds 10 lakhs or its equivalent in foreign currency.
      • All transactions involving receipt by NGO of value more than 10 lakhs or its equivalent in foreign currency.
      • All suspicious transactions whether or not in cash.
      • All cash transactions, where forged or counterfeit currency notes or bank notes have been used as genuine.
    • Preservation of Records
      • As per PML amendment Act 2012, banks/FIs should maintain at least 5 yrs from the date of transaction between bank/FI and client.
      • All the documents taken for identification from customer should be preserved for at least 5 yrs after the business relationship is ended.
      • Banks/FI may maintain record in soft or hard copy.

Reporting Requirement

 General Guidelines

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