The banking codes and standards boards of India (BCSBI) were established by RBI. It was established to provide protection to individual customers and micro and small enterprise customers of banks. To ensure transparent and fair customer service, BCSBI has set up codes of the bank’s commitment to customers and medium and small enterprises that are MSEs. In this article, we take you through the essential banking ombudsman you should know.
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Codes for Consumers right ombudsman:
These codes protect customers rights. It is necessary that the customers are aware of their banking rights. All of us have bank accounts in a bank or multiple accounts in different banks and to avoid the difficulties that we might face sometimes with the services provided by banks, we need to know these banking ombudsman. If you know your banking rights as a bank customer, you will not face problems related to any transaction.
10 Banking Ombudsman Every Customer Should Know:
1. Right to open a bank account
Banks cannot refuse to open an account if you are an Indian citizen. If your application gets rejected because your permanent address is not the same as your current address then you simply have to give your permanent address proof and you will be able to open an account in any city different from your permanent address.
Every account that is a basic banking account, does not need a minimum balance. Although some value-added services may not be provided for such an account.
2. You are not responsible for unauthorized transactions
The onus of any unauthorized transaction in your bank account lies with the bank. This can be helpful in case of a fraud on your bank account.
3. Right to be informed
If the bank refuses any facility to you, you have the right to know the reason. If there are any changes in terms and conditions of your agreement with the bank, it is the duty of the bank to inform you within 30 days of these changes.
4. Bank liable for penalty in case of cheque collection
The bank is liable for a penalty in case of delayed cheque collection. The customer can get compensation for late collection of the cheque. If there is a delay in clearance, the bank has to pay penalty at the standard rate of interest.
5. Return of security upon full loan payment
The security should be returned as soon as the full loan payment has been done. If the liability is fully cleared, the customer shall get back any security, against which liability is fully cleared. This should happen within 15 days of repayment.
6. The provision of one-time settlement
Individual and companies take out loans from banks. If you are unable to repay, you can go to the bank and give reasons to convince them for a one-time settlement. The bank authorities then analyse your reasons for non-payment. If valid and strong, they provide you with the facility of one-time settlement. You can repay a lesser amount than the due and you can be free from the liability.
7. Exchange of torn up notes
You have the right to exchange your torn-up notes in any bank. It will be done if you have all the pieces of the torn note and the serial number is in order and clearly visible.
8. No right to hold money in case of death
In case of death, no money can be held by the bank. Even if the nominee is not declared. The legal representative can claim the money and it is the duty of the bank to give the money to him within 15 days.
9. Third party products
The bank cannot force you to buy third-party products like mutual funds or an insurance policy.
10. Lodging a complaint against bank
Loading a written complaint is absolute banking right. Every customer has the right to lodge a written complaint about any service-related problem or dissatisfaction. The portal to lodge a complaint against the bank is Banking Ombudsman.
You can also watch this video for further information:
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