Salient Features of RBI

1. Introduction

The Reserve Bank of India (“RBI”) - Integrated Ombudsman Scheme, 2021 (“Scheme”) is effective from November 12, 2021. The Scheme adopts ‘One Nation One Ombudsman’ approach by making the RBI Ombudsman mechanism jurisdiction neutral. The Scheme integrates the existing three Ombudsman schemes of RBI namely, (i) the Banking Ombudsman Scheme, 2006; (ii) the Ombudsman Scheme for Non-Banking Financial Companies, 2018; and (iii) the Ombudsman Scheme for Digital Transactions, 2019. The Scheme will provide cost-free redressal of customer complaints involving deficiency in services rendered by entities regulated by RBI, if not resolved to the satisfaction of the customers or not replied within a period of 30 days by the regulated entity.

2. Applicability

All entities regulated by Reserve Bank of India (i.e. Banks / NBFCs / Payment System Operators). In terms of the provisions of the Scheme, Saarathi Finance and Credit Private Limited (“the Company” / “Saarathi Finance”) is a regulated entity.

3. Key / Salient Features of the Scheme

(A) Grounds of Complaint

Any customer aggrieved by an act or omission of a regulated entity resulting in deficiency in service, may file a complaint under the Scheme personally or through an Authorised Representative.

“Authorized Representative” means a person, other than an advocate (unless the advocate is the aggrieved person) duly appointed and authorized in writing to represent the complainant in the proceedings before the Ombudsman.

Deficiency in Service
“Deficiency in Service” means a shortcoming or an inadequacy in any financial service, which the Regulated Entity is required to provide statutorily or otherwise, which may or may not result in financial loss or damage to the customer;

(B) A complaint under the Scheme shall not lie unless:

• Complaints for which the complainant had first made a written complaint to the Saarathi Finance and
  • The complaint was rejected wholly or partly by the Saarathi Finance, and the complainant is not satisfied with the reply; or the complainant had not received any reply within 30 days after Saarathi Finance received the complaint; and
  • The complaint is made to the Ombudsman within one year after the complainant has received the reply from Saarathi Finance to the complaint or, where no reply is received, within one year and 30 days from the date of the complaint.

‘Written complaint’ shall include complaints made through other modes where proof of having made a complaint can be produced by the complainant.

• The complaint is not in respect of the same cause of action which is already-
  • Pending before an Ombudsman or settled or dealt with on merits, by an Ombudsman, whether or not received from the same complainant or along with one or more complainants, or one or more of the parties concerned;
  • pending before any Court, Tribunal or Arbitrator or any other Forum or Authority; or, settled or dealt with on merits, by any Court, Tribunal or Arbitrator or any other Forum or Authority, whether or not received from the same complainant or along with one or more of the complainants/parties concerned. a complaint in respect of the same cause of action does not include criminal proceedings pending or decided before a Court or Tribunal or any police investigation initiated in a criminal offence.
• The complaint is not abusive or frivolous or vexatious in nature;
• The complaint to the regulated entity was made before the expiry of the period of limitation prescribed under the Limitation Act, 1963, for such claims;
• The complainant provides complete information as specified in clause 11 of the Scheme;
• The complaint is lodged by the complainant personally or through an Authorised Representative other than an advocate unless the advocate is the aggrieved person

(C) Grounds for non-maintainability of a Complaint

No complaint for deficiency in service shall lie under the Scheme in matters involving:

• Commercial judgment/commercial decision of a Saarathi Finance;
• A dispute between a vendor and Saarathi Finance relating to an outsourcing contract;
• A grievance not addressed to the Ombudsman directly;
• General grievances against management or executives of a regulated entity;
• A dispute in which action is initiated by Saarathi Finance in compliance with the orders of a statutory or law enforcing authy;
• A service not within the regulatory purview of the RBI;
• A dispute between Saarathi Finance;
• A dispute involving the employee-employer relationship of Saarathi Finance.
• A dispute for which a remedy has been provided in Section 18 of the Credit Information Companies (Regulation) Act, 2005 and
• A dispute pertaining to customers of Saarathi Finance not included under the Scheme

(D) Procedure for Filing a Complaint

(E) Resolution of Complaints (escalated to RBI Ombudsman)

• The Ombudsman/Deputy Ombudsman shall endeavour to promote settlement of a complaint by agreement between the complainant and the Regulated Entity through facilitation or conciliation or mediation.
• The proceedings before the Ombudsman shall be summary in nature and shall not be bound by any rules of evidence. The Ombudsman may examine either party to the complaint and record their statement

(F) Award from Ombudsman:

• In case of award, the complainant to furnish letter of acceptance (if satisfied) of the award to Saarathi Finance, within 30 days from the date of receipt of the copy of award.
• Saarathi Finance to comply with the award and intimate compliance to the Ombudsman within 30 days from the date of receipt of the letter of acceptance from the complainant.

(G) Appeal before the Appellate Authority

The complainant, aggrieved by an Award or rejection of a complaint by Ombudsman office, may within 30 days of the date of receipt of the Award or rejection of the complaint, prefer an appeal before the Appellate Authority.

The Appellate Authority may, if he is satisfied that the complainant had sufficient cause for not making the appeal within the time, may allow a further period not exceeding 30 days.

“Appellate Authority” means the Executive Director in-Charge of the Department of the Reserve Bank administering the Scheme

For more details, kindly refer the detailed scheme of the RBI at “THE RESERVE BANK – INTEGRATED OMBUDSMAN SCHEME, 2021”.