LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » India News

Bank ATM Alert! Credit card, debit card warning! You will be shocked

Complaints made to the Banking Ombudsman, such as cheating and poor service, have seen a massive rise in the last ten years. Most of the grievances relate to issues with ATMs and card transactions.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Bank ATM Alert! Credit card, debit card warning! You will be shocked
Complaints made to the Banking Ombudsman, such as cheating and poor service, have seen a massive rise in the last ten years. Image source: Zeenews
Written By: Dipu Rai
Updated: Mon, Oct 08, 2018
10:39 am
ZeeBiz WebDesk
RELATED NEWS
Have debit card? Use it in bank ATM? ALERT! You will now get SMS and OTP on Rs 10,000 cash transaction Have debit card? Use it in bank ATM? ALERT! You will now get SMS and OTP on Rs 10,000 cash transaction
Don't lose your money in a bank ATM, debit card fraud! Save yourself from a secret Phishing attack Don't lose your money in a bank ATM, debit card fraud! Save yourself from a secret Phishing attack
What is debit card? Pros and cons of having plastic money in your wallet What is debit card? Pros and cons of having plastic money in your wallet
Is internet fully safe? These 10 ways to keep hackers at bay Is internet fully safe? These 10 ways to keep hackers at bay
Beware! See this in ATM machine while inserting debit card, else fraudsters may ooze out your money Beware! See this in ATM machine while inserting debit card, else fraudsters may ooze out your money

Complaints made to the Banking Ombudsman, such as cheating and poor service, have seen a massive rise in the last ten years. Most of the grievances relate to issues with ATMs and card transactions. The Reserve Bank of India data, accessed via query under Right to Information Act by DNA Money, reveals that complaints against banking services soared 134% during the last decade. RBI has 21 offices of the specialised grievance body across the country.

Digitisation was supposed to bring more transparency, security and ease of transactions, but the number of complaints against the poor quality of services lodged in a day went up from 132 on an average in 2008 to 309 per day as on March 31, 2018.

A major rise in the complaints was seen after the financial turmoil of 2008 and the demonetisation of 2016.

In 2008-09, the number of complaints received by the ombudsman rose 44% from a year ago. Similarly, in 2016-17, complaints surged over 22%.

During 2009-10, the banking ombudsman received 79,266 complaints as against 69,117 in the previous year, up 15%.

Most of the grievances were related to ATM, credit and debit card issues, followed by failure to meet commitments. However, ATM-related complaints were gradually replaced by failure to meet commitments.

RBI ombudsman report shows that about 18-24% of the complaints are related to ATM in the last ten years.

Last week, State Bank of India reduced the daily withdrawal limit from Rs 40,000 to Rs 20, 000 for on certain cards to curb frauds. The new withdrawal limit will be applicable from October 31.

After a complaint is made to an ombudsman, the banks and the ombudsman decide whether it is valid or not. If the complaint is found to be valid, then the ombudsman starts redressal or award.

The rate of the award is low. Most of the complaints are either rejected or withdrawn. Almost half of 'maintainable' or valid complaints are rejected. In 2007-08, around 40% of complaints were dismissed, followed by 66% in 2008-09 and 32% in 2009-10. In the last three years, more than half of maintainable complaints have been rejected.

The award level in the last ten years is at just around 1% of the valid or maintainable complaints. U S Bhargava, former general manager, Punjab National Bank, told DNA Money, "Partly, the problem could be because of huge retirements at all levels during the past few years in the industry and newly recruited people are not having enough exposure/experience."

The data of annual reports of the banking Ombudsman Schemes of the past ten years, analysed by DNA Money, reveals that the Ombudsman has given 0.4% to 1% reward of total maintainable complaints. For instance, in 2016-2017, Ombudsman Scheme, released by RBI in December 2017, shows the award was given in 31 cases or 0.05% of total maintainable complaints. Out of the total 1,30,987 complaints, 62,539 were found as maintainable at that time.

K C Chakrabarty, former deputy governor and appellate authority of RBI, said, "The speed, cost, convenience and efficiency of banking services have not improved by factors that technology enables one to achieve. A part of the problem is that banks are yet trying out fledgeling delivery models rather than putting in place a cost-effective, decentralised and realistic delivery model. Fixing a problem/glitch when it happens thus becomes the weakest link in providing efficient customer service. A large number of complaints to the Banking Ombudsman relates to this area."

The Reserve Bank of India notified banking Ombudsman Scheme on June 14, 1995. The scheme is administered and funded by the central bank and applies to scheduled commercial banks, scheduled primary urban co-operative banks and the regional rural banks.

Recently, RBI has tightened the rule of the Ombudsman Scheme and asked the banks to appoint an independent internal ombudsman to review customer complaints that are either partly or entirely rejected by the banks.

Watch this Zee Business video here:

...& ANALYSIS
The number of complaints against the poor quality of services lodged in a day went up from 132 on an average in 2008 to 309 per day as on March 31, 2018

A major rise in the complaints was seen after the financial turmoil of 2008 and the demonetisation of 2016. In 2008-09, it rose 44% from a year ago. Similarly, in 2016-17, there was over 22% surge

Most of the complaints are either rejected or withdrawn. The award level in the last ten years is at just around 1% of the valid or maintainable complaints.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
ATM frauds
RELATED NEWS
Have debit card? Use it in bank ATM? ALERT! You will now get SMS and OTP on Rs 10,000 cash transaction Have debit card? Use it in bank ATM? ALERT! You will now get SMS and OTP on Rs 10,000 cash transaction
Don't lose your money in a bank ATM, debit card fraud! Save yourself from a secret Phishing attack Don't lose your money in a bank ATM, debit card fraud! Save yourself from a secret Phishing attack
What is debit card? Pros and cons of having plastic money in your wallet What is debit card? Pros and cons of having plastic money in your wallet
Is internet fully safe? These 10 ways to keep hackers at bay Is internet fully safe? These 10 ways to keep hackers at bay
Beware! See this in ATM machine while inserting debit card, else fraudsters may ooze out your money Beware! See this in ATM machine while inserting debit card, else fraudsters may ooze out your money

LATEST NEWS

DDA draw LIVE results 2021 - Date, time, streaming, webcast link to check online allotment of flats

Petrol price near Rs 100? Forget that, here is something that will give you 100-km for only Rs 7

NEET 2021 exam: Students don't miss to check the latest update on exam dates, eligibility criteria, registration process and all you need to know before appearing in the exam!

Trading in Rakesh Jhunjhunwala Stocks II Technical’s decoded by Bonanza Portfolio

GPSC Prelims 2021: Final answer key released on gpsc.gujarat.gov.in

MTAR IPO: Know allotment finalisation status, listing date and how to check subscription of shares

Asus ROG Phone 5 set to launch in India on March 10: Here's all you need to know

Happy International Women's Day: Check best WhatsApp wishes, quotes, messages fo your loved ones

MTAR Technologies IPO Subscription details: Retail investors expect bumper listing

Saina Nehwal Biopic Movie Trailer: Super powerful! You will get goosebumps! WATCH - Parineeti Chopra impresses massively

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved