Banking Ombudsman Scheme, 2006

The scheme was introduced with the following objectives:
• To resolve complaints relating to banking services and to facilitate the satisfaction or settlement of such complaints.
• Resolve disputes between a bank and its constituents as well as amongst banks, through the process of conciliation, mediation and arbitration.
All banks are covered by the scheme, including Regional Rural Banks and scheduled primary co-operative banks.
The scheme provides for Reserve Bank to appoint one or more of its officers in the rank of Chief General Manager or General Manager to be known as the banking ombudsmen to carry out the functions entrusted to them within the identified territorial limits. As on date, fifteen Banking Ombudsmen have been appointed, with their offices located mostly in state
The Banking Ombudsman may award compensation not exceeding Rs 1 lakhs to the complainant only in the case of complaints relating to credit card operations for mental agony and harassment.