On January 4, 2023, the Reserve Bank of India (RBI) released the Annual Report of the Ombudsman Schemes for the period April 01, 2021 – March 31, 2022. Its details are as follows:
Highlights:
i.Issues related to ATM (Automated Teller Machine)/debit cards were the highest at 14.65% of the total received at the Office of Banking Ombudsman (OBO) from April 1 to November 11, 2021.
- These were followed by mobile/ electronic banking at 13.64%.
ii.Complaints relating to digital modes of payment and transactions were the highest in number, constituting 42.12% of the total complaints received during the year.
iii.The volume of complaints received under the Ombudsman Schemes/Consumer Education and Protection Cells during 2021-22 increased by 9.39% at 4,18,184 as compared to FY21.
iv.Of these, 3,04,496 complaints were handled by the 22 Offices of RBI Ombudsman (ORBIOs), including the complaints received under the three erstwhile Ombudsman Schemes till November 11, 2021.
- The rate of disposal of complaints by RBIOs improved to 97.97% in 2021-22 from 96.59% in 2020-21.
v.Of the 1,49,419 complaints handled at the Centralized Receipt and Processing Center (CRPC), 1,43,552 complaints had been disposed of at the end of March 31, 2022.
vi.Majority (63.63%) of the maintainable complaints were resolved through a mutual settlement.
Key Developments during 2021-22:
i.Three erstwhile Ombudsman Schemes viz., Banking Ombudsman Scheme (BOS) 2006, Ombudsman Scheme for Non-Banking Financial Companies (OSNBFC) 2018, and Ombudsman Scheme for Digital Transactions (OSDT) 2019 were integrated into the Reserve Bank – Integrated Ombudsman Scheme (RB-IOS), 2021 and launched by Prime Minister Narendra Modi on November 12, 2021.
- RB-IOS also included Non Scheduled Urban Cooperative Banks (UCBs) with deposits above Rs 50 crore.
- Credit Information Companies (CICs) were brought under RBI-IOS with effect from September
1, 2022.
ii. Under the RB-IOS, 2021, a CRPC was established at RBI, Chandigarh to receive complaints through email/physical mode from across India.
- It handle the initial scrutiny and processing of these complaints before assigning the maintainable ones to ORBIOs for further redressal.
iii.A Nationwide Intensive Awareness Programme, ‘Ombudsman Speak’ was launched on the World Consumer Rights Day on March 15, 2022, to strengthen the on-going financial awareness and education by the department and Ombudsman Offices.
Click Here for Official Report
RBI lifts restrictions on Mahindra & Mahindra Financial Services
Reserve Bank of India (RBI) lifted restrictions on Mahindra & Mahindra Financial Services Limited (MMFSL) on recovery operations via third party collection agents.
- The lifting of restrictions followed submissions made by MMFSL and its pledge to strengthen recovery practices and outsourcing arrangements while tightening the process of onboarding third-party agents and strengthening its accountability framework,
Background:
In September 2022, RBI, in exercise of its powers under section 45L(1)(b) of the RBI Act, 1934, bars Mahindra & Mahindra Financial Services Ltd. (MMFSL), Mumbai (Maharashtra) from carrying out any recovery or repossession activity through outsourcing arrangements.
Reason: This regulatory action follows the incident of the 27-year-old pregnant woman who was crushed to death on September 15, 2022 in Jharkhand, by a tractor being driven by a recovery agent acting on behalf of MMFSL.
Recent Related News:
i.RBI has granted in principle approval to Open, a neo-banking fintech, for a Payment Aggregator Gateway (PA/PG) licence.
ii.In an industry first step, Eversource Capital – promoted Accretive Cleantech Finance Private Ltd., doing business as “Ecofy,” has obtained regulatory approval from RBI to operate as a non-deposit-taking Non-Banking Financial Company (NBFC).
About Reserve Bank of India (RBI):
Governor– Shaktikanta Das
Deputy Governors– Mahesh Kumar Jain, Michael Debabrata Patra, M. Rajeshwar Rao, T. Rabi Sankar
Headquarters– Mumbai, Maharashtra
Establishment– 1st April 1935
