Financial Inclusion Bank Ombudsman Explanation in Brief

Financial Inclusion:
Financial inclusion means given banking services to poor people Below Poverty Line (BPL) (Means any family income below One lakh per year) and at low cost.

Government of India has introduced Jandhan Yojan scheme for increasing the percentage of Financial Inclusion average from 55% at present to 100 % by slowly increasing customers of the bank from poorer section. All Banks in the country have to open accounts from 7.5 crore family members minimum 15 crore accounts within one year.
A Poor person can open any account in the bank by submitting photograph of the customer, ID proof and Address proof.

A BPL person is allowed to give only one address proof instead of 4 (or) 5 address proofs given by other people.

If a poor person is not allowed to open a zero balance account (which is called as No Frills account (or) BSBDA (Basic savings bank deposit account) by RBI) by taking one address proof, the customer can lodge a complaint with bank H.O (or) with RBI Ombudsman Department.

Ombudsman:
It is a name of an officer of the bank in RBI, who is incharge of taking care of complaints of customers about the service of the banks.
  • Ombudsman is appointed by RBI under section 35(A) of Banking regulation act 1949.
  • Ombudsman is having powers to put penalty are any bank up to Rs.10 lakhs at any time.
  • Ombudsman is appointed once in every 3 years by RBI
If any customer is not satisfied with ombudsman decision then he/she can go to High court of the state within one month from the date of decision of the ombudsman.

Customer of Banks are having freedom to lodge complaint with Bank H.O (or) Ombudsman (or)
Consumer forum under consumer protection Act (1986) (COPRA).

Consumer Forum:
Consumer forums are started by Govt. consisting of Director, Revenue official, Judicial member etc.
Consumer forum is of 3-tier structure in India
  1. District consumer forum : Can be taken cases up to 25 lakhs values
  2. State consumer forum : Can be taken cases from 20 Lakhs to 1 crore
  3. National consumer forum : Will take up cases of any amount of Rs.1 Crore & above.

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