The Reserve Bank of India introduced the Banking Ombudsman Scheme (BOS) in India on June 14, 1995. The scheme provides a speedy and inexpensive platform to resolve the complaints of bank customers relating to deficiency in banking service. There are 15 offices of Banking Ombudsmen across the country. The Banking Ombudsman is a senior official…
Audits and inspections serve as integral components of a comprehensive compliance framework. While both are designed to ensure conformity with applicable laws, regulations, and internal policies, they differ in scope and focus. Together, they help organizations identify compliance risks, enhance operational integrity, and promote a culture of accountability and continuous improvement. Key Functions of Audits…
Interest rates play a central role in shaping India’s economy—affecting everything from how much people pay on home loans to how businesses finance their operations. The Reserve Bank of India (RBI) is the primary authority responsible for regulating interest rates, ensuring that they support both economic growth and financial stability. Role of the RBI in…
The Reserve Bank of India in May 2015 notified all public sector banks and some private sector and foreign banks to appoint an internal ombudsman. The internal ombudsman would be designated Chief Customer Service Officer (CCSO). The CCSO should not have worked in the bank in which he/she was appointed as CCSO. The Reserve Bank…
In India, nomination laws play a vital role in ensuring the smooth transfer of assets—such as bank accounts, insurance policies, mutual funds, and other holdings—after the death of the owner. While the nominee receives the asset, it’s important to understand that they are not always the ultimate legal owner. Instead, they often act as a…
The provisions of nomination are found in various financial products like Life Insurance, Provident Fund, Gratuity, Co-operative societies and banking regulation acts (section 45ZC to 45 ZF) and Banking Companies (Nomination) rules 1985 and the relevant provisions of the Indian Succession Act. The nomination facility is available only to individual depositors and not to any…
The acceptance of deposits stands as the fundamental cornerstone of banking business, representing the primary source of funds that enables banks to fulfill their core function of financial intermediation. In India, the regulatory framework governing deposit acceptance has evolved into a comprehensive system designed to protect depositor interests while ensuring the stability and integrity of…
Banking regulation serves as the cornerstone of financial stability, ensuring that banks operate in a manner that protects depositors, maintains public confidence, and contributes to overall economic growth. In India, the Reserve Bank of India (RBI) wields significant regulatory powers that enable it to supervise and direct banking operations through a comprehensive legal framework. Among…
Directors play a central role in ensuring sound corporate governance in banks. They provide oversight, strategic direction, and accountability, thereby safeguarding depositor confidence and the financial stability of the institution. In a sector as sensitive as banking, directors act as fiduciaries who balance profitability with compliance and stakeholder protection. Board Composition A well-structured board combines…
Corporate governance in banks is more than a compliance requirement—it is the foundation of stability, accountability, and depositor confidence. Unlike many other businesses, banks deal with public deposits and have systemic importance to the economy. This makes governance standards in banking far more rigorous, focusing on transparency, risk management, ethical conduct, and protection of stakeholder…
