India’s Banking Regulator, the Reserve Bank of India has asked all public sector banks, some private and foreign sector banks to appoint internal ombudsman. RBI has asked the banks to improve the customer service and also to ensure that customer complaints in banks get resolved fast. The bank’s internal ombudsman will be a forum available to bank customers for grievance redressal before they can even approach the Banking Ombudsman.

The designation of the Internal Ombudsman will be Chief Customer Service Officer (CCSO). RBI has clearly said that the CCSO should not have worked in the bank in which he/she is appointed as CCSO.

Based on Asset Size and Business Mix, the RBI has asked some Private banks to appoint internal ombudsman. It includes IndusInd Bank, ICICI Bank, Axis Bank, HDFC Bank, Kotak Mahindra Bank, Standard Chartered Bank, Citi Bank N.A. and HSBC.

Tidbits

• The RBI introduced the banking ombudsman scheme in 1995 and was revised in 2002.
• The Reserve Bank may appoint one or more of its officers in the rank of Chief General Manager or General Manager to be known as Banking Ombudsmen.
• The Banking Ombudsman covers all kinds of banks – PSU Banks, Private banks, Rural banks and co-operative banks.

GK Questions

• If a person or the bank is not satisfied by the decision given by the Banking ombudsman, the complaint can be taken forward to Appellate Authority. Who is that Appellate Authority? Deputy Governor of RBI
• How many Banking Ombudsmen are there in India? 15
• The Reserve bank of India was set up based on the recommendations of the ______? 1926 Royal Commission on Indian Currency and Finance OR Hilton–Young Commission.