Reserve Bank-Integrated Ombudsman Scheme

28.01.2025

Reserve Bank-Integrated Ombudsman Scheme

Why in the news?                        

          The Reserve Bank of India (RBI) resolved 95 per cent of complaints received under the Reserve Bank-Integrated Ombudsman Scheme (RB-IOS) between April 1, 2023, and March 31, 2024.

About Reserve Bank-Integrated Ombudsman Scheme:

• It was launched on November 12, 2021.
• It adopts the ‘One Nation - One Ombudsman’ approach by making the RBI’s Ombudsman mechanism jurisdiction neutral.
• It integrates the erstwhile three Ombudsman schemes of RBI namely:  the Banking Ombudsman Scheme, 2006, the Ombudsman Scheme for Non-Banking Financial Companies, 2018 and the Ombudsman Scheme for Digital Transactions, 2019.

Features of Scheme:

• It defines ‘deficiency in service’ as the ground for filing a complaint, with a specified list of exclusions. A deficiency of service is a shortcoming or an inadequacy in the financial service or some other service related to it that the Regulated Entities (RE) is supposed to provide.
• A Centralised Receipt and Processing Centre has been set up at RBI, Chandigarh, for receipt and initial processing of physical and email complaints in any language.
• 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.
• Banks covered: It covers all commercial banks, Non-Banking Financial Companies (NBFCs), RRBs, Payment System Participants, most Primary (Urban) Cooperative Banks with a deposit size of ₹50 crore and Credit Information Companies.

                                                           Source: Indian Express

Consider the following statements regarding the Reserve Bank-Integrated Ombudsman Scheme:

1. It covers all commercial banks and non-banking financial companies.

2. Under this a regulated entity will not have any right to appeal in cases where an award is issued by the ombudsman against it.

Which of the statements given above is/are correct?

A.1 only

B.2 only

C.Both 1 and 2

D.Neither 1 nor 2

Answer C