What To Do If Banking Ombudsman Rejects Your Complaint

In this article I will use common language but if you are interested in what the Banking Ombudsman Scheme exactly says, you may read clauses 8, 9, and 13 of the scheme here: https://rbidocs.rbi.org.in/rdocs/Content/PDFs/BOS2006_2302017.pdf. Now what does it mean by rejection of a complaint by the Banking Ombudsman in India. It means that the Banking Ombudsman has closed the complaint in their record and is not going to taken any action on it going forward. The complainant is so advised after closing the complaint that his/her complaint has been closed by rejection. The 'applicable clause' of rejection as per the scheme is mentioned in the closure letter and the complainant is also informed whether or not an appeal against the rejection is possible. If you just noticed, I have put the words 'applicable clause' in quotes. This is because which clause applies to the rejection is a rather subjective matter which is sometimes decided regardless of the what the Banking Ombudsman Scheme says. Keep reading...

Grounds On Which Banking Ombudsman Can Reject Complaints

Banking Ombudsman can reject a complaint if

[13(a) and 13(b)] the complaint is not made on one of the eligible grounds (clause 8), correct procedure for filing the complaint is not followed by the complainant [clause 9(3)] or 

(Generally speaking, your complaint needs to be related to a banking service, you should have complained to the concerned bank before and either received no response within 30 days or received an unsatisfactory response)

[13(c)] the complainant involves an amount exceeding Rs. 20 lakh [clause 12(5) and clause 12(6)] or

These are clauses 12(5) and 12(6):

(5) Notwithstanding   anything   contained   in   Sub-Clause   (4),   the   Banking Ombudsman shall not have the power to pass an Award directing payment of an amount towards compensation which is more than the actual loss suffered by  the  complainant  as  a  direct  consequence  of  the  act  of  omission  or commission  of  the  bank,  or  two  million  rupees  whichever  is  lower.  The compensation  that  can  be  awarded  by  the  Banking  Ombudsman  shall  be exclusive of the amount involved in the dispute.

(6) The  Banking  Ombudsman  may  also  award  compensation  in addition  to  the above  but  not  exceeding rupees 0.1  million  to  the  complainant,  taking  into account   the   loss   of   the complainant's time,   expenses   incurred   by   the complainant, harassment and mental agony suffered by the complainant.

[13(d)] the processing of the complaint requires consideration of elaborate documentary and oral evidence which the Banking Ombudsman deems inappropriate or

(Your complaint is just too complicated for RBI's officials to understand)

[13(e)] the complaint is made without any sufficient cause or

(The Banking Ombudsman deems the complaint as frivolous)

[13(f)] the complainant fails to pursue the complaint with reasonable diligence or

(The complainant does not respond to queries/calls for additional information or documents made by the Banking Ombudsman)

[13(g)] the Banking Ombudsman feels that no loss or inconvenience has been caused to the complainant.

(The concerned bank might have violated the Banking Law or a directive of the Reserve Bank of India but the violation did not result in a loss to the complainant)


If a complaint is rejected by Banking Ombudsman citing clauses 13(d), 13(e), 13(f) or 13(g), the complainant has a legal right to lodge an appeal against the rejection. In such a case, the appeal shall be made to the Appellate Authority who is the Deputy Governor in charge of the Customer Education and Protection Department of Reserve Bank of India.

Address of the Appellate Authority

The Deputy Governor
(Appellate Authority)
Reserve Bank of India
Customer Education and Protection Department
Shahid Bhagat Singh Marg
Mumbai - 400 001

Right To Appeal Denied?

Please read this article regarding the Denial of Appeals Aspect. If your complaint has been unduly closed citing clauses 13(a), (b), or (c), which deny appeals, you may submit a complaint in this regard to the appellate authority's address given above or to the Governor of Reserve Bank of India at the following address:

The Governor
Reserve Bank of India
Shahid Bhagat Singh Marg
Mumbai - 400 001

Use Your Right To Information

If there is any undue delay on the part of the Banking Ombudsman or the Appellate Authority in responding to your letters, do not hesitate in using the Right to Information Act to call for information regarding the action taken on your letters. In such a case, your application under Right to Information Act will be sent to the same authority to whom the original letter was sent.