The Banking Ombudsman Scheme - Relevance and Significance in the E-Banking System

Abstract In the present digital age, we are relying more on internet banking and digital banking facilities that have made our daily lives even simpler and easier. Customers are doing paperless banking and availing benefits of banking activities in the trend of digital banking. In banking systems, a digital platform called e-banking, often known as electronic banking, enables users to access and manage their financial transactions online. The banking sector has seen a substantial transformation due to technology and artificial intelligence. Fortunately, e-banking has improved accessibility, efficiency, and convenience for both banks and customers. The rising usage of internet banking has created a tussle between customers and bankers relationships more particularly about deficiency in services. Reserve Bank of India has launched a very optimistic scheme named as Ombudsman Scheme, 1995 to resolve the banker-customer issues pertaining to various services of banks. The paper aims to critically analyse the relevance and significance of the banking ombudsman scheme in the e-banking systems. The paper further highlights the integration of three different ombudsman schemes into a consolidated one named as ‘The Reserve Bank- Integrated Ombudsman Scheme, 2021.