Lok Sabha Question No. 5131 (UNSTARRED), answered on 2023-04-03
Subject: RBI Ombudsman Scheme
Ministry: FINANCE
Asked by: Gowdar Mallikarjunappa Siddeshwara

## GOVERNMENT OF INDIA

## MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES LOK SABHA

## UNSTARRED QUESTION NO. 5131

TO BE ANSWERED ON THE 03rd APRIL; 2023 / CHAITRA 13, 1945 (SAKA)

'RBI Ombudsman Scheme'

## 5131. SHRI G. M. SIDDESHWAR

Will the Minister of FINANCE be pleased to state:

- (a) the number of complaints received by the Reserve Bank of India under the various Ombudsman schemes in various categories in the country during the last two years;
- (b) whether   there is a rise in complaints related to debit and credit card transactions and online banking; and
- (c) if the details thereof  along with the  steps  taken to address   those complaints and to ensure that additional  safeguards are provided in the transactions through debit card; credit card and online banking ?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (DR: BHAGWAT KARAD)

- (a): The details of complaints received by Reserve Bank of India (RBI) under the erstwhile Ombudsman schemes viz, the  Banking Ombudsman Scheme (BOS), 2006; the Ombudsman Scheme for Non-Banking Financial Companies (OSNBFC), 2018; the Ombudsman Scheme for Digital Transactions (OSDT), 2019 and the RBIIntegrated Ombudsman Scheme (RB-IOS) , 2021 during the last two years are given below;

| Scheme                                                 | 2020-21 (Apr-Mar)   | 2020-21 (Apr-Mar)   | 2021-22 (Apr-Mar)   | 2021-22 (Apr-Mar)   |
|--------------------------------------------------------|---------------------|---------------------|---------------------|---------------------|
|                                                        | Number              | Share (%)           | Number              | Share (%)           |
| BOS                                                    | 3.41,747            | 89.39               | 2,09,196            | 50.02               |
| OSNBFC                                                 | 36,951              | 9.67                | 20,439              | 4.89                |
| OSDT                                                   | 3,594               | 0.94                | 2,281               | 0.55                |
| RB-IOS, 2021                                           |                     |                     | 72,580              | 17.35               |
| Sub Total                                              | 3,82,292            | 100.00              | 3,04,496]           | 72.81               |
| RB-IOS, 2021- Centralized and Processing Centre (CRPC) |                     |                     | 1,13,688            | 27.19               |
| Total                                                  | 3,82,292            | 100.00              | 4,18,184            | 100.00              |

(b): The total number of complaints received against banks under the Ombudsman Schemes, relating to ATM Debit Cards, Credit Cards and mobilel electronic banking are given as under:

| Nature of Complaints        | No. 0f complaints receivedidisposed against banks at Offices of RBI Ombudsman (ORBIOs)   | No. 0f complaints receivedidisposed against banks at Offices of RBI Ombudsman (ORBIOs)   | No. 0f complaints receivedidisposed against banks at Offices of RBI Ombudsman (ORBIOs)   | No. 0f complaints receivedidisposed against banks at Offices of RBI Ombudsman (ORBIOs)   |
|-----------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|
|                             | 2020-21 (Apr-Mar)                                                                        | 2020-21 (Apr-Mar)                                                                        | 2021-22 (Apr-Mar)                                                                        | 2021-22 (Apr-Mar)                                                                        |
|                             | Received                                                                                 | Disposed                                                                                 | Received                                                                                 | Disposed                                                                                 |
| ATM Debit Cards             | 60,203                                                                                   | 60,203                                                                                   | 41,375                                                                                   | 41,375                                                                                   |
| Mobile / electronic banking | 44,385                                                                                   | 44,385                                                                                   | 39,388                                                                                   | 39,388                                                                                   |
| Credit Cards                | 40,721                                                                                   | 40,721                                                                                   | 32,162                                                                                   | 32.162                                                                                   |

The data reveals that the number of complaints received relating to Debit Cards, Credit Cards and Mobilel Electronic Banking have decreased in 2021-22 (April-March) as compared to 2020-21 (April-March)

(c): The RBI has been taking various  initiatives from time to time for  speedier of these   grievances. These, inter-alia, include, appointment of  Nodal Officer and updation of details on website, display of grievance redressal policy and mechanism on websites, prompt resolution of all pending grievances within 30 days, regular   monitoringlreview at senior level;, root cause analysis for   minimizing occurrence etc:

RBI; vide its circular dated 6th   July, 2017 , had issued   guidelines for safeguarding the customers from unauthorized electronic banking transactions which inter-alia, include strengthening of systems and procedures, reporting of unauthorized transactions by customers to banks, limited liability of a customer; reversal timeline for zero liabilityllimited liability of customer, Board approved policy for customer protection, burden of proof on banks and reporting and monitoring requirements

RBI had a circular on Strengthening of Grievance  Redress Mechanism in Banks on January 27, 2021, regarding strengthening and improving the efficacy of the grievance redress mechanism of banks and for facilitating better customer service.

Further; RBI had formulated the Internal Ombudsman (IO) Scheme for banks, Non-bank Payment System Participants, Non-Banking Financial Companies (NBFCs) , and Credit Information Companies (CICs) in 2015, 2019, 2021 and 2022 respectively. RBI Ombudsman offices carry out Town-hall meetings and awareness programmes on various issues including digital and online frauds in their respective jurisdictions including the rural areas.

In addition to above, RBI has established Contact Centre with 24x7x365 IVRS (#14448) as an "on-tap service" strengthened Internal Grievance Redress mechanism at Regulated Entities and other initiatives for customer awareness such as pan India Intensive Awareness Campaign.