RBI/2004-05/425
DBOD.No.Leg.BC.79 /09.07.005/2004-05
April 19, 2005
To
All Scheduled Commercial Banks (Excluding RRBs)
Dear Sir,
Role of the Customer Service Committee of the Board - Monitoring
the implementation of awards under the Banking Ombudsman Scheme
Please refer to the Governor's D.O. letter dated August 14,
2004 addressed to Public Sector Banks / Private Sector Banks and Governor's
letter dated August 26, 2004 addressed to select Foreign Banks regarding constitution
of the Customer Service Committee of the Board and also advising the banks regarding
role of Customer Service Committee of the Board. In this connection, it has
been decided that the above Committee should also play a more pro-active role
with regard to complaints / grievances resolved by Banking Ombudsmen of the
various States as indicated below.
2. The Scheme of Banking Ombudsman was introduced with the
object of enabling resolution of complaints relating to provision of banking
services and resolving disputes between a bank and its constituent as well as
between one bank and another bank through the process of conciliation, mediation
and arbitration in respect of deficiencies in customer service. After detailed
examination of the complaints / grievances of customers of banks and after perusal
of the comments of banks, the Banking Ombudsmen issue their awards in respect
of individual complaints to redress the grievances. It has however been reported
that the banks enter into further correspondence and continue to delay the implementation
of the awards. As the delays in redressal defeats the objective of the Banking
Ombudsman Scheme, banks are advised to ensure that the Awards of the Banking
Ombudsmen are implemented immediately and with active involvement of Top Management.
3. Further, with a view to enhancing the effectiveness of the
Customer Service Committee, banks are also advised to:
- Place all the awards before the Customer Service Committee to enable them
to address issues of systemic deficiencies existing in banks, if any, brought
out by the awards; and
- Place all the awards remaining unimplemented for more than three months
with the reasons therefor before the Customer Service Committee to enable
the Customer Service Committee to report to the Board such delays in implementation
without valid reasons and for initiating necessary remedial action.
4. Please acknowledge receipt.
Yours faithfully
(Anand Sinha)
Chief General Manager-in-Charge
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