Multiple choice

What is the maximum amount the Banking Ombudsman can award as compensation?

  1. Rs. 10 lakh

  2. Rs. 20 lakh

  3. Rs. 30 lakh

  4. No limit
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A Correct answer
Explanation

The Annual Report of the Banking Ombudsman Scheme for the year 2011-12 released by RBI's Customer Service Department contains a clarification in this regard. It says, "Clause 12(5) and 12(6) establish pecuniary jurisdiction of the BO i.e. the ceiling upto which BO can award monetary compensation. Under Clause 12(5), BO has powers to pass an award directing payment of an amount, not more than the actual loss suffered by the complainant as a direct consequence of an act of omission or commission of the bank, or Rs. 10 Lakh, whichever is lower."

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