What changed
RBI expanded the role of the Customer Service Committee to proactively monitor implementation of Banking Ombudsman awards. Banks must now place all awards before the committee, especially those unimplemented for over three months, with reasons for delay.
What it means for you
Banks must ensure immediate implementation of Ombudsman awards to avoid customer grievances lingering. The Customer Service Committee will now oversee systemic issues flagged by awards, requiring top management to act on delays. This tightens accountability and reduces correspondence-based delays.
What you must do
- Place all Banking Ombudsman awards before the Customer Service Committee for review.
- Report awards unimplemented for over three months to the committee with reasons for delay.
- Ensure top management actively oversees and expedites award implementation.
- Use award insights to identify and fix systemic deficiencies in customer service.
Who it affects
All scheduled commercial banks (excluding RRBs), Customer Service Committees of bank boards, Top management of banks, Banking Ombudsmen offices
What is the purpose of the Banking Ombudsman Scheme?
It resolves complaints about banking services and disputes between banks and customers or between banks through conciliation, mediation, and arbitration.
What happens if a bank delays implementing an Ombudsman award?
The award must be placed before the Customer Service Committee if unimplemented for over three months, with reasons, and the committee reports such delays to the board for remedial action.
Does this circular apply to Regional Rural Banks?
No, it applies to all scheduled commercial banks excluding RRBs.