Customer service Grievance Redressal Mechanism in Banks

1. CUSTOMER SERVICE GRIEVANCE
REDRESSAL MECHANISM FOR BANKING
RELATED COMPLAIN
Presented by,
Abinash Kr. Mandilwar
Chief Manager & Faculty Member,
STC, Bhopal

2. COPRA
(Consumer Protection Act-1986)

3. INTRODUCTION
Initially enacted during 1986 and
implemented w.e.f. 15th April 1987.
A legal force available to customer to
enforce their right as consumer (not
applicable in the State of J & K).
Amendment on 17.12.2002, and
implemented w.e.f. 15th March 2003
(World Consumers’ Rights Day).

4. CONSUMER PROTECTION COUNCIL
To promote and protect the right
of the consumers, councils are
established. Their scope is not
regarding directly dealing with
the consumer complaints at
initial or appellate scope but to
promote and protect the rights of
consumer.

5. CENTRAL CONSUMER PROTECTION COUNCIL
The Central Government has established a
council known as the Central Consumer
Protection Council, called the Central Council.
The Central Council consist of the following:
a) The Minister-In-charge of the Consumer
Affairs in the Central Government shall be the
Chairman of the council, and
b) Such member of other official or non-official
members representing such interests as may be
prescribed.
The Central Council shall meet as and when
necessary but at least once in a year.

6. STATE CONSUMER PROTECTION COUNCIL
The State Government has established a council known
as the State Consumer Protection Council, called the
State Council. The State Council consist of the
following:
a) The Minister-In-charge of the Consumer Affairs in
the State Government shall be the Chairman of the
council,
b) Such member of other official or non-official
members representing such interests as may be
prescribed by the State Government, and
c) Such member of other official or non-official
members not exceeding ten as may be nominated by
Central Government.
The State Council shall meet as and when necessary
but at least twice in a year.

7. DISTRICT CONSUMER PROTECTION COUNCIL
The State Government has established a
council known as the District Consumer
Protection Council in every district, called the
District Council. The District Council consist
of the following:
a) The Collector of the District shall be the
Chairman of the council,
b) Such member of other official or non-
official members representing such interests
as may be prescribed by the State
Government, and
The State Council shall meet as and when
necessary but at least twice in a year.

8. OBJECTIVE OF THE COUNCILS
The objectives of the Councils under Consumer Protection Act
(COPRA) is to promote and protect the rights of the consumers
such as:-
The right to be protected against the marketing of goods and
services which are hazardous to life and property.
The right to be informed about the quality, quantity, potency,
purity, standard and price of goods or services, as the case may
be so as to protect the consumer against unfair trade practices;
The right to be assured, wherever possible, access to a variety of
goods and services at competitive prices;
The right to be heard and to be assured that consumer's interest
will receive due consideration at appropriate forums;
The right to seek redressal against unfair trade practices or
restrictive trade practices or unscrupulous exploitation of
consumers; and The right to consumer education.

9. DEFINITION OF CONSUMER
1. Any individual who buys goods or
hire services for consideration i.e.
for a price for his use and not for
resale is a consumer.
2. Any use of such goods and
services with the permission of
the buyers is also a consumer.

10. NOT A CONSUMER
1. Person buying goods for resale.
2. Person buying goods for any
commercial purpose.
3. Person receiving goods/services
free or gifts.
4. Person enjoying personal service
under a contract( i.e.- service by
employees/maid servants) etc.

11. COVERAGE
 All goods and services including
banking, insurance, transport,
processing, electricity, professional
such as physicians etc. in private, public
and cooperative sectors are covered
under this Act .
 All banking services are covered due to
their being essential services.

12. WHO CAN FILE A COMPLAINT ?
A consumer (individually or jointly),
any voluntary consumer organisation,
Central or State Governments.
Limitation period is 2 years from the
date of cause of action i.e. purchase of
goods/hiring of services.

13. PECUNIARY (FINANCIAL) JURISDICTION
.
District Forum Up to Rs. 20
lakh
headed by President
(qualified to be a District
Judge) & 2 other members
(1Woman)
State Commission > Rs. 20 lakh
up to Rs. 100
lakh
headed by President
(has/had been HC Judge) &
2 other members
(1Woman)
National
Commission
Above Rs. 100
lakh
headed by President
(has/had been Judge of
Supreme Court) & 4
members (1Woman)

14. TIME LIMIT
ACTION TIME
Admission of complaint from the date of
receipt of the complaint.
21 days
Disposal without analysis or testing of
commodities
3 months
Disposal analysis or testing of commodities 5 months
Disposal should be done at State/National
Commission
3 months
Decision should be taken on Appeals for
admission/rejection
90 days

15. PROCEDURE
A simple written complaint in duplicate
with full name and address of opposite
party narrating facts of the complaint
along with copies of the supporting
documents and details of relief sought.
No Court Fee is charged.
Engaging of Lawyer is not necessary,
consumer or anyone can represent his
case.

16. RELIEF BY COPRA
Includes rewards of default for
goods, removal of deficiencies in
services, replacement by new
goods free from defects, refund of
price/ charges, award of
compensation for loss of injuries
suffered, if any.

17. PENALTY
Penalty for non-compliance of order is
imprisonment for not less than one
month and up to 3 years/fine not less
than Rs. 2,000/- and up to Rs. 10,000/-
or both.
If the complaint is found to be of frivolous
nature, fine up to Rs. 10,000/- or
imprisonment for not less than one
month but up to 3 years.

18. APPEALPeriod of appeal against the order is limited to 30
days from the date of order in all cases.
Appeal to State Commission against the award of
District Forum, Deposit amount is 50% of the
Claim amount/maximum Rs. 25,000/-.
Appeal to National Commission against the award
of State Commission, Deposit amount is 50% of the
claim amount/maximum Rs. 35,000/-.
Appeal to Supreme Court against National
Commission, Deposit amount is 50% of the claim
amount/maximum Rs. 50,000/-.

19. Any Question ?

20. BANKING OMBUDSMAN
SCHEME 2006

21. INTRODUCTION
RBI notified the Banking Ombudsman
Scheme 2006 u/s 35A of Banking Regulation
Act1949 and scheme came into force w.e.f.
01st Jan 2006 covers all commercial banks,
RRB’s & scheduled primary Co-operative
Banks.
Objective –Resolution of complaints relating
to banking services through conciliation &
mediation between the bank and the
aggrieved parties or by passing an award.

22. BANKING OMBUDSMAN SCHEME
Eligibility of Ombudsman- CGM/GM of RBI tenor
not exceeding 3 Yrs at a time. Cost borne by RBI.
Who can file a complaint –A person himself or
his authorised representative (other than an
advocate) on paper or electronic media (e-
mail), or forwarded by RBI or Central Govt.
Jurisdiction- For Credit card, the jurisdiction is
with reference to ombudsman having
jurisdiction over the billing address of the card
holder. For other accounts, it is as per location
of the branch.

23. CONDITIONS FOR COMPLAINT
Complain was made to the Bank and Bank had
rejected or no reply was received within a month
or complainant is not satisfied with the reply given
by the bank.
Period of more than one year has not lapsed after
receipt of bank reply.
Complaint is not for issues already settled by
ombudsman or for which proceeding before court
or any other forum is pending or a decree or order
has been passed.
The complaint is within limitation period under
Indian limitation Act 1963.

24. REJECTION OF COMPLAINT BY
OMBUDSMAN
If it Frivolous, malafide or without
sufficient cause or there is no loss or
damage or inconvenience caused to the
complainant or is beyond the pecuniary
jurisdiction of ombudsman.
Can appeal to appellate authority
within 30 days of receipt of rejection to
Dy. Governor RBI .

25. AWARD BY OMBUDSMAN
 Where a complaint could not be settled by
agreement within a period of one month from the
date of receipt of the complain, the ombudsman
may pass an award or reject on the basis of
evidence principles of banking law and Practice,
directions and guidelines issued by RBI.
 Awards shall specify the amount to be paid by bank
as compensation not more than actual loss suffered
or Rs.20 lac (As amended up to July 1, 2017, earlier it
was Rs.10 lac), whichever is lower.
 The Banking Ombudsman may award
compensation not exceeding Rs. 1 lakh to the
complainant for mental agony and harassment.

26. AWARD BY OMBUDSMAN
Awards shall be binding on the bank if the
complainant sends acceptance in full & final
settlement within 30 days from the date of
receipt of the award.
Implementation-Customer has to send
acceptance of the award within 30 days from the
date of receipt of the award.
Bank has to implement the award within one
month from the date of receipt of the acceptance
from the complainant and intimate compliance
to the banking ombudsman.

27. APPEALCustomer can file an appeal to appellate authority
(Dy. Governor RBI ) within 30 days of date of
receipt of award (could be extended by 30days by
appellate authority).
Appeal by Banks should be filed with sanction of
the CMD /ED. For bank 30 days period for filing
appeal begins from date of receipt of customer’s
acceptance.
The appellate authority may dismiss /allow the
appeal or set aside the award or refer the matter to
ombudsman for fresh disposal or modify the award
or pass any order as it may deem fit.

28. NODAL OFFICER
Nodal Officer- The bank shall
appoint nodal officer at their
ZO/HO & inform the ombudsman
who shall represent the bank/
furnish information to the
ombudsman.
Ground of Complaint-All Services
rendered by the bank.

31. INTRODUCTION
The Universal declaration of Human Right(UDHR-1948)
and also the International Covenants on Civil & Political
Right (ICCPR-1966) to which India is a signatory urged
upon the member countries to provide citizen the Right
of Information.
Government of India there upon passed RTI Act 2005,
which Came into force on 12.10.2005 which extends to
the whole of India except the State of Jammu and
Kashmir.
It provides right to all the citizens to have access to
information under the control of public authorities with
a view to promoting transparency and accountability.
This helps in reducing corruption and inefficiency in
public administration.

32. DEFINITION OF PUBLIC AUTHORITY
The expression, public authority means that
any authority or body or institution of self-
Government established/constituted :
a. By or under the Constitution,
b. By any other Law made by the Parliament,
c. By any other Law made by the State
Legislature,
d. By notification issued/order made by
appropriate Government authority etc.

33. OBLIGATIONS OF BANK
•Bank of India is a public
authority as per the definition
given in the RTI Act, 2005. So,
Bank of India is obliged to
provide, information to the
general public to the extent
permitted by the Act.

34. WHAT IS INFORMATION
Information includes records,
documents, memos. E-mails, opinions,
advices, press releases, circulars,
orders, log books, contracts, reports,
data materials held in any electronic
form and information relating to any
private body which can be accessed by
a public authority.

35. WHO CAN REQUEST FOR INFORMATION ?
Every citizen of the country, who desires, can make a
request, subject to payment of the fee prescribed by
Government of India after 12.10.2005. Companies/
Corporate /Firms are not being the citizen of country
are not eligible.
Request should be in writing/electronic media.
Request should be in English/Hindi/Official Language
of the Area.
Request should be made to Central Public Information
Officer of the organisation.
Gives full particulars of the Information sought.
Person made request should give his contact address in
full.
Person making a request should enclose the proof of
his Indian Citizenship.

36. AUTHORITY/ TIME LIMIT/ PENALTY
 Authority to provide information:- Each public
authority is to appoint Public Information Officer
(PIO) to provide information.
Time Limit:- Information must come within 30
days. ( for life and liberty cases- 48 hours)
Penalty for failure to provide information:- PIO
to pay Rs. 250/- per day, maximum Rs. 25000/-

37. DETAILS OF FEESThe fees shall be charged by way of Cash against
proper receipt or by DD/Bankers’ Cheque/ Indian
Postal Orders payable to the public authority at
the following rates :
Application Fee of Rs. 10.00/-, Nil in case of BPL
Citizen;
Rs. 2.00 for each page of photocopy of A4/A3 size
paper;
Actual charge/cost price of a copy in larger size
paper;
For information provided in CD/Floppy, Rs. 50.00
per CD/Floppy.

38. WHOM TO APPROACH IN BANK OF INDIA
Our Bank has designated officers as Central
Public Information Officers (CPIOs) and
Appellate Authorities (AAs) at our
following offices :
Head Office
National Banking Group Offices
Zonal Offices
Divisional Managers (MCB)
Large Corporate Branches
Branches

39. EXEMPTIONS
Section 8 & 9 of the Act prohibits PIO to pass
Information affecting the sovereignty and
integrity of India, the security, strategic,
scientific/economic trade of the State.
Information which has been expressly forbidden
to be published by any Court of Law or disclosure
of which may constitute Contempt of Court.
Information received, in confidence, from Foreign
Government.
Information, the disclosure of which could cause
a breach of Parliament or State Legislature.

41. BANKING CODES
&
STANDARDS
BOARD OF INDIA
(B C S B I - 2006)

42. INTRODUCTION
Based on the recommendation of Tarapore
Committee, BCSBI was setup to oversee the Fair
Practice Code evolved by the bankers.
 The board was set up as a Society. Commercial
banks, RRBs and Urban Banks are its members.
A Governing Council of BCSBI looks after its
financial affairs and managerial policies.
The main objective of BCSBI is to plan, prepare
and publish voluntary comprehensive code and
standard for bank to provide fair treatment to
customers.

43. BANKING CODES
A comprehensive Bankers’ Fair Practice Code
prepare by an IBA working group is used as a
standard by BCSBI. Through the agreement, the
member banks bind themselves for
implementing the code and supervision by the
board.
On 03 July 2006 BCSBI released the banks ‘ code
for customer service which is a voluntary code.
It provides protection to the customers and
explains how banks are expected to deal with
the customers for their day to day operation.

44. OBJECTIVE OF THE CODE
a) Promote good and fair banking practices by
setting minimum standards in dealing with the
customers.
b) Increase transparency so that the customer can
have a better understand of what they can
reasonably expect of the service.
c) Encourage market forces, through competition,
to achieve higher standards.
d) Promote a fair and cordial relationship between
the customers and their bank.
e) Promote confidence in the banking system.

45. APPLICATION OF CODE
SB/CD Account, TDR, PPF & other deposit accounts
Pension, payment orders, remittances by DD etc.
Government Transactions.
Demat accounts, equity, Government bonds.
Indian currency notes exchange facility.
Collection of cheques, safe custody, SDV facility.
Loans and overdrafts.
Foreign exchange services.
Third party insurance & investment products.
Card products including Credit Card, Debit Cards.

46. TIME SCHEDULE UNDER BCSBI CODE
Action Time
Change in term of deposit account notice 1 month
Notification of change without notice 30 days
Closure of account on customer request 05 days
Transfer of accounts to other branch 2 weeks
Acknowledgement of complain 1 week
Redressal of customer complain 6weeks
Closure of account by bank notice 30 days
Settlement of deceased claim case 15 days
Change of fee/charge- notice board 1 month
Closure/shifting of branch- notice Where no other bank has branch 3 months
Closure/shifting of branch- notice Where other bank has branch 2 months
Change in credit card terms- notice 1 month
Loan recovery- time to visit customer 7 am - 7 pm

47. CUSTOMER SERVICE RELATED ISSUES
CUSTOMER SERVICE RELATED ISSUE TIME
FRAME
Draft should be valid uniformly in banks 3 months
Banks should issue duplicate DD without non payment advice up to Rs. 5000/-
Duplicate DD should be issued within 14 days
If duplicate DD not issued timely, int. payment should be made at FDR rate
Immediate credit- outstation instrument and immediate credit within Bank
Discretion
Rate of interest payable in case of delay in the collection of outstation
cheque.
Bank
Discretion
Composition of Branch level customer Service Committee: BM, representative of all
staff categories.
Customer day celebrated on- 15th every month
Employee working hours begin 15 minutes before customer service hours :- Goiporia
Committee