PROCEEDINGS BEFORE THE BANKING OMBUDSMAN

1. What happens when a complaint is received by the Banking Ombudsman?

The Banking Ombudsman endeavors to promote, through conciliation or mediation, a settlement of the complaint by agreement between the complaint and the bank named in the complaint.

2. What happens if the bank makes an offer to settle?

If the terms of settlement (offered by the bank) are acceptable to the complainant in full and final settlement of his complaint, the Banking Ombudsman will pass an order as per the terms of settlement which becomes binding on the bank and the complainant.

3. What happens if the complaint is not settled by agreement?

If a complaint is not settled by an agreement within a period of one month, the Banking Ombudsman proceeds further to pass an award. Before passing an award, the Banking Ombudsman provides reasonable opportunity to the complainant and the bank, to present their case.

4. What will the Banking Ombudsman consider for passing an award?

For passing an award, the Banking Ombudsman is guided by the documentary evidence placed before him by the parties, the principles of banking law and practice, directions, instructions and guidelines issued by the Reserve Bank of India and such other factors, which in his opinion are necessary in the interest of justice.

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