JAIIB LRAB Unit 26 - Purpose, Extent, Definitions, Establishment and Powers

Awardmeans an award passed by the Banking Ombudsman in accordance with this scheme.
Authorised Representative means a person duly appointed and authorised by a complainant or a party to an arbitration proceeding, as the case may be, to act on his behalf and represent him, before Banking Ombudsman.
Banking Ombudsman means any person appointed under the scheme.
Review Authority is the Dy. Governor in charge of Rural Planning and Credit Department of the RBI, who shall review the award of the Banking Ombudsman and shall be responsible for implementing any such award as per the scheme.
Settlement means an agreement reached by the parties either by conciliation or mediation by the Banking Ombudsman

Banking Ombudsman

1. Minimum age of the person 65 years.
2. Appointment may be made for period of 3 years but the same is extendable for 2 years.
3. May be removed by giving three months notice/by paying three months emoluments.
4. Banking Ombudsman is appointed by a committee of 3 Dy. Governers of RBI and the additional secretary, Finance.
5. The object of introducing the Banking Ombudsman Scheme, 2002 to enable resolution of complaints relating to banking services.
6. Banking ombudsman resolve the dispute between banks or between bank and its customer by arbitration reference if both the parties to the complaint agree for such reference for arbitration and if value of the claim does not exceed Rs. 10 lakhs.