Bank overcharged you or failed to reverse an unauthorised debit? Here’s what you should do next

If your bank has charged you an incorrect fee, deducted money without your authorisation or failed to resolve an unauthorised transaction, you do not have to simply accept the loss. Every bank has a formal grievance redressal process that customers can use to report such issues and seek a reversal or refund.

A bank customer can also escalate the matter by approaching the Reserve Bank of India (RBI), which allows grievances to be registered through its complaint management system, an online platform for redressal under the Integrated Ombudsman Scheme. However, this should be treated as a fallback option in case your bank fails to resolve an issue satisfactorily.

When to submit a complaint to RBI?

Before you approach the central bank’s grievance portal, you must first lodge a formal complaint with your bank or financial institution. If you are dissatisfied or do not receive a response within 30 days, then you can approach RBI.

The RBI’s portal deals with complaints related to wrong or excessive bank charges, failed UPI or other digital payments, delay or non-payment of funds, non-reversal of charges after failed transactions, unauthorised debits or fraudulent activities and deficiencies in loan or deposit services.

The central bank’s ombudsman scheme’s framework empowers it to issue interim, non-binding advisories to the regulated entity, requiring it to take action for full or partial resolution to enable quicker settlement. Here, the definition of a regulated entity includes banks, NBFCs and payment system participants.

How to file a complaint on RBI portal?

The first step should be sending a written complaint to the bank or NBFC first. Wait for an unsatisfactory reply or 30 days of silence. After the prescribed timeline is over, you can follow the given steps:

Step 1: Visit cms.rbi.org.in

Step 2: Click ‘file a complaint’ and select category (bank, NBFC, system participant or CIC), then the specific entity.

Step 3: Registered mobile receives a one-time password. The number becomes your permanent login handle for status tracking.

Step 4: Mention required details such as contact, transaction and relief-sought.

Step 5: Upload the pre-step complaint, reply, KYC and proof documents.

Once all this is done, you will receive an SMS and email with a unique unique complaint reference number (CRN). You must save it track status on the portal.

Complaint and resolution timeline

You should file the complaint with the RBI ombudsman within 90 days of receiving the bank’s response. If the bank does not reply to your complaint, you get 90 days after the 30-day period expires to approach the ombudsman. Complaints filed beyond the applicable timeline may be marked non-maintainable, according to a report by GoCredit.

After you submit the complaint, RBI forwards it to the concerned bank or financial institution for a response. If the response is unsatisfactory or the bank fails to respond, the ombudsman can take up the matter. In may cases, the RBI facilitates a settlement between the customer and the bank.

Most complaints are resolved within around a month. If the ombudsman issues an award in your favour, the bank is bound to comply once you provide a written acceptance within 30 days.