There are more than 64000 bank branches functioning in India. Many a times disputes arise between customers and banks on matters relating to banking operations such as wrong debit to accounts, excess recovery of interest/charges, wrong dishonor of cheques, inad­equacy in services, etc.

In order to provide quick inexpensive and expeditor’s settlement of customer’s complaints, the Reserve Bank introduced Banking Ombudsman Scheme since June 1995 under the provisions of Banking Regulation Act, 1949.

All complaints against Scheduled Commercial Banks and Scheduled Primary Co-operative Banks can be taken up with Banking Ombudsman for redressed of grievances. The Regional Rural Banks are not so far covered under the scheme. There are 15 Banking Ombudsman offices in India as on March 1999.