What changed
The earlier timeline for customers to approach the Banking Ombudsman after lodging a complaint with the bank has been revised. Previously, the period was specified in para 5.10(c) of the November 3, 2006 circular; now, if a complainant does not receive a satisfactory response within 30 days, they can escalate to the Ombudsman.
What it means for you
Banks must ensure their internal grievance redressal mechanisms respond to customer complaints within 30 days to avoid escalation to the Banking Ombudsman. This revision applies to outsourced financial services as per the guidelines.
What you must do
- Update internal grievance handling procedures to acknowledge and resolve complaints within 30 days.
- Communicate the revised escalation timeline to all customer-facing staff and outsourcing partners.
- Review service level agreements with vendors to ensure they support timely complaint resolution.
- Train customer service teams on the new 30-day window before Ombudsman escalation.
Who it affects
All scheduled commercial banks (excluding RRBs), Bank customer service and grievance redressal teams, Outsourcing partners handling financial services for banks
What is the new timeline for customers to approach the Banking Ombudsman?
Customers can approach the Banking Ombudsman if they do not receive a satisfactory response from the bank within 30 days of lodging their complaint.
Does this circular apply to Regional Rural Banks (RRBs)?
No, the circular explicitly excludes RRBs from its scope.
When does this revised timeline take effect?
The circular was issued on March 3, 2008, and the revised timeline applies from that date.