Bank is an institution to cater the financial needs of the public in the society. Banking sector contributes a lot to the prosperity of a country in the world. The banking business in every country ensures the public that the deposited money is in safe and is to be withdrawn in case of need. The customers of the banks may face inconvenience in case of deficiency in service of the banks. The disputes between the customers and the banks on the day to day banking transactions are to be solved without delay for the smooth banking business. The Reserve Bank of India has introduced Banking Ombudsman Scheme (BOS) for the redressal of the grievances of the customers as an alternate to the regular courts in settling the disputes. The BOS deals with the procedure for constitution of Banking Ombudsman Office and the amicable settlement of the complaint against the banks with speedy manner and without any fee in disposal of the case. There is also an appellate authority to scrutinise the decision of the ombudsman to resolve the litigation between the bank and customer. The ombudsman in the Indian banking system is well in creating awareness in the customers to settle the disputes freely and fast. The ombudsman in banking system strives for the friendly banking.bank and customer. The ombudsman in the Indian banking system is well in creating awareness in the customers to settle the disputes freely and fast. The ombudsman in banking system strives for the friendly banking.
Keywords: Banking, Customer’s grievance, Ombudsman, Amicable settlement, Appellate authority, Speedy disposal, Reserve Bank of India.
