In order to boost quality of customer service and to ensure an undivided attention to resolution of customer complaints, RBI has directed public sector banks and large private and foreign banks to appoint internal ombudsman. This internal ombudsman, who will be designated as Chief Customer Service Officer (CCSO), shouldn’t be a person within the bank.
While, it is mandatory for all PSU banks to appoint a CCSO, RBI has directed private and foreign banks, including ICICI Bank, HDFC Bank, Axis Bank, Kotak Mahindra Bank, IndusInd Bank, Standard Chartered Bank, Citi Bank N.A. and HSBC to appoint an internal ombudsman. These private and foreign banks have been selected on the basis of their asset size, and business mix among other parameters.
According to the direction, bank's internal ombudsman will be a forum available to bank customers for grievance redressal before they could even approach the Banking Ombudsman.
The Banking Ombudsman Scheme (BOS) was introduced back in 1995 to provide an expeditious and inexpensive forum to bank customers for resolution of complaints relating to deficiency in banking services provided by commercial banks, regional rural banks and scheduled primary co-operative banks. The scheme which used to cover 11 grounds of complaints/ deficiencies on its introduction now has upped its number to 27.