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RBI grants wider authority to Banking Ombudsman

The Reserve Bank of India has extended wider authority to the Banking Ombudsman Scheme, the legal framework to resolve bank customers' complaints.

BOS, which earlier covered all the commercial banks and scheduled primary co-operative banks will now have jurisdiction on all regional rural banks as well.

RBI said in a statement on Friday that the reviewed BOS will provide for setting up a 'Reviewing Authority' to review BOS' award against a bank, on a complaint.

The bank, against which an award has been passed may file an application to the deputy governor in charge of Rural Planning and Credit Department of the RBI for a review.

The bank can request for a review only when the award appears to be in conflict with the bank's instructions or the law and practice of banking, the statement said.

BOS is also given the power to act as an arbitrator on disputes not exceeding Rs 10 lakh, between banks and customers or between two banks, the statement added.

BOS was introduced in the year 1995. The adjudication of pending complaints and execution of the awards already passed will continue to be governed by the provisions of the Banking Ombudsman scheme 1995, it added.

UNI

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