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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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Repo Rate , Reverse Repo Rate, CRR and SLR

Repo Rate

  • Interest Rate at which the central bank i.e. Reserve Bank of India lends money to commercial banks in the event of any shortfall of funds to maintain liquidity. 
  • Used by monetary authorities to control inflation
  • Home loan rates are linked to RBI Repo Rate.
  • Banks use Repo rate to determine deposit rate, lending rates and base rates.

Reverse Repo Rate

  • Rate at which Banks deposit their excess funds with the RBI. 
  • It is lower than Repo rate
  • It is used to control the cash flow in financial market
  • Increase of Reverse Repo Rate leads to more deposit by Bank with RBI to earn more interest and vice versa.


CRR (Cash Reserve Ratio)


  • Legal provisions - section 42(1) RBI Act.
  • Rate - Fixed by RBI
  • Average Fortnightly balance on reporting Friday in a current a/c with RBI.
  • Min.daily balance should not < 90% of the average fortnightly balance
  • Default in maintain CRR- bank has to pay interest to RBI at   
    • bank rate +3% - first day 
    • bank rate +5% - subsequent days
  • No interest paid by RBI.

SLR (Statutory Liquidity Ratio)


  • Legal provisions - Section 24 of BR Act.
  • Rate RBI can fix up to 40% of net demand and time liabilities as on last Friday of preceding fortnight.
  • From of SLR investment .
    • Cash Balance 
    • Balance with bank and excess CRR balance with RBI
    • Investment in Gold.
    • Investment in unencumbered approved securities (govt. security/trustee security including purchase under LAF)
  • Default - Interest payment as in CRR.
  • No min 
  • Max 40%   

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