How can RBI minimize banking disputes in India

The Reserve Bank of India is the apex banking institution which controls the monetary policy. It commenced its operations on 1st April 1935 during the British rule in accordance with the provisions of the Reserve Bank of India Act, 1934.

There are a lot of functions of the Reserve Bank of India through which it supervises and controls functions of other banks in India. It is known as the Banker's Bank because it works as a central bank where commercial banks are account holders and can deposit money. RBI is also a banker of the government and performs the merchant banking function of the central and state governments. There are many small and major disputes in Indian banking from credit card to interest rates. Being the crest of all banking institutions, RBI can help in minimizing variance in Indian banking.

Dealing with Credit Card Disputes
Many a times customers have to deal with many problems while buying or returning insurance policy when they're paying the premium via credit card. RBI recommends that if credit card companies are charging money even after ending or returning the insurance then you should complain in writing. The card issuing bank has to provide all information to the customers within 15 days.

Dealing with Loan Disputes
When a loan is taken from the bank and the person misses to pay the EMI's then this period is mandatory. However, customers should take detailed information on these charges beforehand. If the bank denies disclosing this information then the customer can file a complaint on the RBI website which requires customers to enter detailed information. Other than this, if the person closes the loan before maturity, then the additional charges are levied and banks have mandatory pre-notify this to the customers. Banks cannot levy unwanted charges

Education Loan Disputes
The education segment saw bad loan altercations. RBI said that the borrowers were clearly oblivious of the consequences of non-repayment on their credit track record. Future loan applications of borrowers, who don't repay their loans are rejected by banks as they cross-check their loan repayment history. It is vital for the people to understand the importance of maintaining financial discipline and paying their loans equated monthly instalments and credit card dues regularly. "Increased awareness of individuals and different enterprises borrowers on the consequences of repayment of loans leading to lowering of their credit scores and possibly denial of new loans would lead to better credit discipline and also prevent a downturn in the asset quality of banks."- Kislay Pandey, Banking Disputes Lawyer, the Supreme Court of India.

Types of Complaints before RBI's Banking Ombudsman

    The banking ombudsman can receive and consider any complaint relating to the following deficiency in banking services:

    ·         Non-repayment or delay in the payment or collection of cheques, drafts and bills.

    ·         Failure to provide banking facility.

    ·         Failure to issue or delay in issue, of drafts, pay orders or bankers cheque.

    ·         Non-adherence to prescribed working hours.

    ·         Refusal to open deposit accounts without any valid reason of refusal.

    ·         Levying of charges without adequate prior notice to the customer.

    ·         Deficiency in internet banking

    ·         Non-adherence to the provisions of fair practices, codes for lenders as adopted by the banks or Code of Banks Commitment to customers.

    ·         Non-observance of regulatory guidelines or engagement of recovery agents by the banks.

Being the centralised power RBI is the regulatory body and the summit of banks in India that coordinates the working and functioning of all other banks.

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