The Hindu : Tamil Nadu / Chennai News : Banks cannot refuse notes or coins of small denomination

Online edition of India's National Newspaper
Friday, Jan 06, 2006

Tamil Nadu

Tamil Nadu - Chennai

Banks cannot refuse notes or coins of small denomination

S. Vydhinanathan

Banking ombudsman will take up the issue if customer prefers a complaint There are about 15 banking ombudsman offices, located in RBI's offices and in South the offices are located in Chennai, Bangalore, Hyderabad and Thiruvananthapuram.

CHENNAI: If a bank refuses to accept small denomination notes / coins or charges commission for accepting the same, a customer can file a complaint against the bank concerned to the banking ombudsman. As per the Banking Regulation Act, banks cannot refuse to accept notes or coins of small denomination. Still some banks, including nationalised banks, are reluctant to accept them stating that it is time-consuming. The revised banking ombudsman will take up the issue with the banks concerned if the customer gave a complaint in this connection.

According to RBI guidelines, the revised banking ombudsman, launched on the New Year has simplified the procedures for redressing the grievances of customers against the banks.

The complaints could relate to operations in deposit accounts, refusal or delay in opening and closing of accounts, delay in collection of cheques drafts and bills, levying of service charges without prior intimation and delay in sanction/ disbursement of loans or refusal to accept application for loan without valid reason.

The complaints may be against commercial banks or regional rural banks or scheduled primary banks. There are about 15 banking ombudsman offices, located in RBI's offices and in South the offices are located in Chennai, Bangalore, Hyderabad and Thiruvananthapuram.

Customers need not pay any fee for filing their complaints to the banking ombudsman.

The procedure for filing complaint with the ombudsman is also simple. All one has to do is to give his complaint to the banking ombudsman under whose jurisdiction the bank falls. Customers can send their complaints in writing or e-mail it or by online (www.bankingombudsman.rbi.org.in) to get them redressed. The customers should make sure that complaints are made within one year. Consumer organisations may also file an application on behalf of an aggrieved party. All complaints are numbered and each complaint is given a unique identification number to facilitate tracking.

The banking ombudsman redresses the complaint either by mutual settlement or by passing an award on merits. If the customer is not satisfied by the decision of the ombudsman, he can appeal to the RBI against the ombudsman's award.

Printer friendly page
Send this article to Friends by E-Mail

Tamil Nadu