Customers have been often found to be aggrieved by deficiency in appropriate service by banks. Be it a delay in check payment or remittance facility or any other kind of service, grievances of the customer against banks have been many.

In order to address the complaints and grievances of customers against banks, a forum has been formed known as the Banking Ombudsman. The concept of Banking Ombudsman was introduced in India in the year 1995. It was revised thereafter in the years 2002 and 2006.

The Banking Ombudsman is appointed by Reserve Bank of India. He is a senior official appointed from the staff of the office of RBI. Unlike many other sectors where the senior authority usually a retired official holding top positions in government institutions/banks, the banking ombudsman is an in-service official of RBI mostly chief general managers/senior general managers.

Under the amendment in the year 2006, it was decided that the banking ombudsman should not be from any bank and should solely be from the staff of RBI so as to maintain the idea of impartial justice.

There are 15 offices of banking ombudsman in India presently. A customer has to file his complaint to the nearest office in his area.

The office of Banking Ombudsman handles issues against all commercial banks, cooperative banks as well as regional rural banks (RRBs).

It handles cases related to any kind of trouble faced by the customer in availing banking services which he has a right in. It also addresses to cases related to internet banking. It takes up cases having valuation less than Rs 10 lakhs. In case the customer has been made to go through phase of mental harassment and agony in the process, he can also be compensated by Banking Ombudsman in genuine cases.