Financial Daily from THE HINDU group of publications
Saturday, Nov 12, 2005


News
Features
Stocks
Shipping
Archives
Google

Group Sites

Money & Banking - Regulatory Bodies & Rulings


New ombudsman scheme in offing

Our Bureau

The Finance Minister, Mr P. Chidambaram, said: "A revised ombudsman scheme is being put in place."

Kolkata , Nov. 11

THE Reserve Bank of India has decided to rehaul the entire Banking Ombudsman Scheme, first by shifting the onus of funding the scheme to itself.

The move will immediately relieve the banks of the need to bear the costs.

More importantly, it will also correct what is plainly seen as erroneous - banks being the agencies that fund the office of the ombudsman and the very entities against which an aggrieved customer can lodge complaints.

The Finance Minister, Mr P. Chidambaram, said: "A revised ombudsman scheme is being put in place," adding that the plan is in line with the customer-centric objectives that RBI has set for itself. He was addressing the inaugural session at BANCON 2005 in Kolkata on Friday.

The objectives are two-fold: One, building better relationships with customers, and two, ensuring greater transparency in banking operations. The new scheme, which will meet the customer satisfaction goals set by the bankers, is a reflection of the 2010 vision document prepared by IBA (Indian Banks' Association), he said.

Later, in his address, Dr Y.V. Reddy, RBI Governor, further dwelt on this matter, pointing out that serious discussions have been held. It will be introduced within the next few weeks, he said.

If customers are not satisfied with the banks then they can take their grievances to the ombudsman. However, customers feel that the ombudsman takes the side of the banks.

Moreover, if the bank is not satisfied with an order of the ombudsman then they can move to higher authorities. Customers do not enjoy such privilege.

"In this context, it is felt that the role of the ombudsman needs to be strengthened. So, the new scheme is been considered," he added.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
Fall in currency assets pulls down forex reserves by $1 b


Rupee up 10 paise; securities rise
Eligibility norms for insurance surveyors being revised — Only chartered accountants, engineers to qualify
BoI offers housing loans with life cover
Tata AIG proposes to introduce health-oriented keyman cover
`Second round of LAF soon'
No deregulation of savings account rates: Y.V. Reddy

ICICI Bank to manage US-India fund to fight AIDS
SBT launches toll-free infoline
Exim Bank launches schemes to promote SME exports
Banks consolidation — Chidambaram asks unions to convince their top leaders
Talks in final stages to acquire NHB's stake in housing finance co: BoB chief
New ombudsman scheme in offing
Balaji Swaminathan quits ICICI Bank


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line