The Ombudsman Scheme provides a mechanism for passing an Award in favor of a complainant and establishes a structured right to appeal against such Awards or certain rejections; further, the scheme can be suspended by the Reserve Bank of India (RBI) if necessary for regulatory reasons.
Passing of an Award
- An Award is a formal direction issued by the Ombudsman for redressal, which may include specific performance or compensation to the complainant.
- Awards are binding unless challenged or appealed within the prescribed time.
Right to Prefer Appeal
- Either the complainant or the regulated entity (except for non-furnishing of documents) can appeal to the Appellate Authority within 30 days of communication of the Award or rejection of the complaint under appealable clauses.
- The Appellate Authority can dismiss the appeal, allow it and set aside the Award, remand the matter for fresh disposal, or modify the Award/order as necessary.
- The Authority may grant an additional extension (not exceeding 30 days) if sufficient cause for delay is shown.
Suspension of the Scheme
- The RBI has the power to suspend the operation of all or part of the Ombudsman Scheme, generally or for specific regulated entities, if it considers it expedient.
- Such suspension can be extended as required by RBI orders.
Key Points
- Award: Legal decision by Ombudsman for redressal.
- Appeal: Right to challenge the Award or some orders within specified periods.
- Suspension: RBI’s discretionary power to suspend the Scheme, ensuring regulatory control.
These provisions ensure that complainants and regulated entities have a fair mechanism for grievance redressal, structured escalation, and safeguard through RBI’s supervisory oversight.
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