Success of banking ombudsmen scheme: Myth or reality

2012 IJRSM – Volume 1 Issue 1


Malyadri, Pacha*
Principal, Government Degree College, Andhra Pradesh, India (

Sirisha, S.
Lecturer, Institute of Technology and Management, Warangal, Andhra Pradesh, India (


In the present banking system, excellence in customer service is the most important tool for sustained business growth. Customer complaints are part of the business life of any corporate entity. This is more so for banks because they are service organizations. Over a period of time, the number of complaints against banks with regard to deficiency of their services has been increasing in spite of several efforts taken by the banks on the advice of the Reserve Bank of India. Since the role of banks has changed from ‘Class Bank’ to ‘Mass Bank’, there is a tremendous pressure on the part of banks to satisfy the various needs of the customers. The load of work is increasing day by day on banks taking into account The Banking Ombudsman (BO) Scheme was established by the Reserve Bank of India (RBI) in 1995 to provide speedy solutions to grievances faced by bank customers. Although the number of complaints received through this forum has increased in recent times, the lack of awareness among the customers was a big concern. Through some proactive measures taken by the RBI and awareness campaigns conducted by the Ombudsman, the scenario looks much brighter today. Even then, a lot needs to be done to make the Scheme function more effectively. Against this backdrop, an attempt has been made to analyze the performance of Banking Ombudsman Scheme. Hence, the purpose of the present paper is to analyses the performance of the Banking Ombudsmen.

Keywords: banking performance; banking ombudsman; customer relations; consumer or customer; complaints; grievances



*Corresponding Author