Integrated Ombudsman Scheme

15th November, 2021 Economy

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Context:

Recently. Government has launched the integrated Ombudsman Scheme.

the scheme is based on “One Nation-One Ombudsman” with one portal, one email, and one address for the customers to lodge their complaints.
The integrated ombudsman scheme amalgamates three ombudsman scheme of RBI - banking ombudsman scheme of 2006, ombudsman scheme for NBFCs of 2018 and ombudsman scheme of digital transactions of 2019.
The unified ombudsman scheme will provide redress of customer complaints involving deficiency in services rendered by RBI regulated entities viz. banks, NBFCs and pre-paid instrument players if the grievance is not resolved to the satisfaction of the customers or not replied within a period of 30 days.
The new scheme also includes non-scheduled primary co-operative banks with a deposit size of Rs 50 crore and above.
The integrated scheme makes it a “One Nation One Ombudsman’ approach and jurisdiction neutral.

Customers will be able to file complaints, submit documents, track status, and give feedback through a single email address.
There will also be a multilingual toll-free number that will provide all relevant information on grievance redress.
Now, there will be a single point of reference for customers to file their complaints, submit the documents, track status, and provide feedback.

The first ombudsman scheme was rolled out in the 1990s.
One of the primary concerns with earlier ombudsman was the lack of maintainable grounds on which the consumer could challenge the actions of a regulated entity at the ombudsman or a rejection of the complaint on technical grounds. It led to in a preference for the consumer court notwithstanding the extended timelines for redressal.

it will no longer be necessary for the complainant to identify under which scheme he/she file complaint with the ombudsman.
The scheme includes a wider definition of deficiency of services which ensures complaints will not go unaddressed or rejected simply on account of “not covered under the grounds listed in the scheme”.
The scheme is jurisdiction neutral and a centralised receipt and processing centre has been set-up in Chandigarh for initial handling of complaints in any language.
RBI says the regulated entity will not have any right to appeal in cases where an award is issued by the ombudsman against it for not furnishing satisfactory and timely information.