Performance Review of Banking Ombudsman Scheme: An Effective Tool to Empower Bank’s Customers

Abstract

The purpose of introducing the New Economic Policy 1991 was to bring in increased effectiveness and efficiency in the service quality by bringing about more privatization and globalization. The introduction of the New Economic Policy led to an increase in the number of service providers in different sectors including the banking sector. Therefore there was enhanced need of safeguarding the interests of the customers in this sector. In order to ensure proper and high quality and proper service quality to banking customers a major initiative was undertaken by the RBI in the year 1995. This much needed initiative was the introduction of The Banking Ombudsman Scheme (BOS) in the year 1995. A revision of the scheme was done in the year 2006 to make it more effective. The present study is an endeavor to review the performance of the scheme from 2010-2015.