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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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Risk Categorization of Customers


For effective maintenance of Anti Money Laundering (AML), Customers in bank has been categorized in three types based on risk associated with them-

1) Low Risk Customer
2) Medium Risk Customer
3) High Risk Customer

Frequency of Updating Customer Identification Data i.e Photographs and Address Proof

1) Low Risk Customer - 10 Years
2) Medium Risk Customer - 8 Years
3) High Risk Customer - 2 Years


Frequency of Activities of Updating Customer Identification Data - Quarterly (April, July, October and January)

Examples

1) Low Risk Customer - Salaried Employees whose salary structures are well defined, People belonging to lower Economic strata of the society whose accounts show small balances and low turnover, Government Departments and Government owned companies, regulators and statutory bodies

2) Medium Risk Customer - Customers that are likely to pose a higher than average risk depending on customer’s background, nature and location of activity, country of origin, sources of funds etc like

a) Persons who is indulged in such business or industry or trading activities where the area of his residence or place of business has a scope or history of unlawful trading or business activities.

b) Where the client profile of the person who is opening an account, according to the perception of
the branch is doubtful.

3) High Risk Customer - Non-Resident Indian (NRI), High Networth Individual (HNI), Political Exposed Person (PEP), NGOs, Trusts, Hindu Undivided Family (HUF), Exporters, Importers, Co-operative Societies , Unclaimed Deposits, Dealers of Jewelries (Gold, Silver, Diamonds etc)


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