The Banking Ombudsman Scheme was introduced in 1995.
The Banking Ombudsman Scheme (BOS) received over 160,000 complaints in FY18, 24.9 percent higher than FY17, the Reserve Bank of India (RBI) stated in its annual report. The complaint disposal rate also went up to 96.5 percent in FY18 from 92.5 percent the previous year.
According to the annual report published on April 24, 2019, the exact number of complaints received in FY18 was 163,590 whereas it was 130,987 and 102,894 in FY17 and FY16, respectively. About 8 percent of the complaints received were pending by the end of the previous year, but this year the rate has gone down to 3.53 percent.
The number of banking ombudsman offices is now 21; it was 15 in FY16 and 20 in FY17.
The State Bank of India (SBI) received the maximum number of complaints (28,598). In terms of the number of complaints received, ICICI Bank (5,162) and HDFC Bank (5,150) were the next on the list. Bank of Nova Scotia and Capital Small Finance Bank received one complaint each.
The most number of maintainable complaints was lodged in Kanpur (9,856), Mumbai-I (8,802) and Chandigarh (7,698).In the foreword of the report, Deputy Governor MK Jain said the annual report reflected “the changing landscape of the financial sector.”
“The report also touches upon the Way Forward, particularly about formulating a separate Ombudsman Scheme for Digital transaction, developing a system for the online resolution of disputes as well as capacity building of the OBOs to facilitate efficient and effective management of the rising volume of complaints,” he added.
According to the report, the major grounds of complaints were nonobservance of fair practices code (22.1 percent), ATM and debit card issues (15.1 percent), credit card complaints (7.7 percent), failure to meet commitments (6.8 percent), and mobile and electronic banking (5.2 percent).
The RBI first notified the BOS in 1995 under Section 35 A of the Banking Regulation Act, 1949. It has gone through various revisions over the years; the latest revision was in July 2017.The complete annual report is available here.
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