Credit problems pertaining to deposits and advances are on rise as per the record of the Banking Ombudsman that has been set up by RBI for quick and cost effective redressal of grievances related to deficiency in banking services.
Ombudsman has registered a 22% increase in the number of complaints across the country in the year 2007. From 31,732 complaints in 2005-06, the number has gone up to 38,638 complaints in 2006-07. In Chandigarh circle which also includes Punjab and Himachal Pradesh, Ombudsman has recorded 2006 complaints in 2006-07 as compared to 1489 complaints in the years 2005-06.
This year complaints related online banking facilities are set to rise according to Banking Ombudsman, RBI (BO) for Punjab, Himachal Pradesh and Chandigarh. The BO said that various emails have been received by consumers who have registered their protest against the online banking.
?Maximum complaints come from Punjab followed by Chandigarh and then Himachal Pradesh. Problems related to credit cards are on rise in this region. Majority of complaints originates from operations in savings, current or any other account, non payment or inordinate delay in the payment or collection of cheques, drafts, bills, complaints pertaining to fraudulent withdrawals from deposit accounts and fraudulent encashment of a cheque?, said BO while talking to FE.
?Most of the grievances get settled down at Ombudsman with 48 hours. There are only 161 pending cases from the last year which are under consideration. We also keep writing to banks so that consumer may not suffer?, BO added.
The RBI had first introduced the Banking Ombudsman Scheme in 1995 to provide expeditious and inexpensive forum to bank customers for resolution of their complaints relating to deficiency in banking services.
The scheme was revised in 2002 mainly to cover regional rural banks and to permit review of the banking Ombudsmens’ awards against banks by the RBI. The Banking Ombudsmen currently have their offices in 15 centres.
The Banking Ombudsman is a quasi judicial authority. It has power to summon both the parties – bank and its customer, to facilitate resolution of complaint through mediation.