What is the procedure for filling Complaint against Banks in India?
Dated: 2024-04-29 05:07:04
What are the grounds on which complaint against a bank can be made and what is it's procedure?
Answers by Lawyers
Banking had always been foundation of a nation's economy and individuals living in it. Bank plays a great role in safeguarding money, to buy things which one cannot pay at present (credit facility), to snare big transactions in a safe and secured way along with numerous facilities. Importance of a bank can be seen by all from the fact that the Government had been endeavouring to introduce schemes for the advancement of bank and people operating and transacting through it.
With the object to address various issues raised by the aggrieved party, one such scheme is introduced by RBI, known as THE BANKING OMBUDSMAN SCHEME, 2006. This scheme is introduced with the object of enabling resolution of complaints relating to certain services rendered by banks and to facilitate the satisfaction or settlement of such complaints.
Grounds for filing a Complaint:
Complaint in a Banking ombudsman can only be filed when there does not exist complicated facts in a case and which can be addressed without supervision of the court. Section 8 of the Banking Ombudsman Scheme specifies grounds on which a Complaint can be filed, which are:
- Where there is non-payment or inordinate delay in the payment or collection of cheques, drafts, bills etc.;
- non-acceptance, without sufficient cause, of small denomination notes tendered for any purpose, and for charging of commission in respect thereof;
- non-acceptance, without sufficient cause, of coins tendered and for charging of commission in respect thereof;
- non-payment or delay in payment of inward remittances ;
- failure to issue or delay in issue of drafts, pay orders or bankers’ cheques;
- Banks are not adhering with the prescribed working hours.
- When bank fails to provide or delays in providing a banking facility (other than loans and advances) promised in writing by a bank or its direct selling agents;
- If there is a delay, non-credit of proceeds to parties’ accounts, non-payment of deposit or non-observance of the Reserve Bank directives, if any applicable to rate of interest on deposits in any savings, current or other account maintained with a bank;
- There is a complaint from Non-Resident Indians having accounts in India in relation to their remittances from abroad, deposits and other bank related matters;
- Bank refuses to open deposit accounts without any valid reason for refusal;
- Bank levies of charges without adequate prior notice to the customer;
- Bank’s non-adherence by the bank or its subsidiaries to the instructions of Reserve Bank on ATM/Debit card operations or credit card operations;
- non-disbursement or delay in disbursement of pension (to the extent the grievance can be attributed to the action on the part of the bank concerned, but not with regard to its employees);
- refusal to accept or delay in accepting payment towards taxes, as required by Reserve Bank/Government;
- refusal to issue or delay in issuing, or failure to service or delay in servicing or redemption of Government securities;
- forced closure of deposit accounts without due notice or without sufficient reason;
- refusal to close or delay in closing the accounts;
- non-adherence to the fair practices code as adopted by the bank;
- non-adherence to the provisions of the Code of Bank’s Commitments to Customers issued by Banking Codes and Standards Board of India and as adopted by the bank ;
- non-observance of Reserve Bank guidelines on engagement of recovery agents by banks; and
- any other matter relating to the violation of the directives issued by the Reserve Bank in relation to banking or other services.
Procedure for filling a Complaint:
Section 9 of the Banking Ombudsman Scheme states the procedure for filing a complaint with the Banking Ombudsman. Any person so aggrieved can invoke the above mentioned grounds and can file a complaint in person or through an advocate. The complaint can be filed with Banking Ombudsman within whose jurisdiction the branch or office of bank complained against is located.
The complainant is required to make an application at the Banking Ombudsman office or an online application would also fulfil the purpose. The form must be duly signed clearly admitting all circumstances, and stating specifically:
- the name and the address of the complainant,
- the name and address of the branch or office of the bank against which the complaint is made,
- the facts giving rise to the complaint,
- the nature and extent of the loss caused to the complainant, and
- the relief sought for.
A complaint to the Banking Ombudsman can be made:
- If written complaint had been made with the bank and the bank had rejected the complaint or the complainant has not received any reply within the period of one month after the bank received his representation or the complainant is not satisfied with the reply given to him by the bank.
- If no reply had been received from the bank against the written complainant then complaint can be filed after one month of making complaint and within one year of filing complaint and if reply had been given then complaint can be filed within a year of making written complaint.
- The same cause of action should not have raised with any court, tribunal or arbitrator or any other forum.
- The complaint is not frivolous or vexatious in nature; and
- The complaint is made before the expiry of the period of limitation prescribed under the Indian Limitation Act, 1963 for such claims.
Minal B Khona