Amendment status not verified — confirm the current text below against the official source.
(1) If a complaint is not settled by agreement within a period of one month from the date of receipt of the complaint or such further period as the Banking Ombudsman may allow the parties, he may, after affording the parties a reasonable opportunity to present their case, pass an Award or reject the complaint. (2) The Banking Ombudsman shall take into account the evidence placed before him by the parties, the principles of banking law and practice, directions, instructions and guidelines issued by the Reserve Bank from time to time and such other factors which in his opinion are relevant to the complaint. (3) The award shall state briefly the reasons for passing the award. (4) The Award passed under sub-clause (1) shall specify the amount, if any, to be paid by the bank to the complainant by way of compensation for the loss suffered by him and may contain any direction to the bank. (5) Notwithstanding anything contained in sub-clause (4), the Banking Ombudsman shall not have the power to pass an award directing payment of an amount which is more than the actual loss suffered by the complainant as a direct consequence of the act of omission or commission of the bank, or ten lakh rupees whichever is lower. (6) In the case of complaints arising out of credit card operations, the Banking Ombudsman shall, while determining the amount of compensation payable, take into account the loss of the complainant's time, expenses incurred by the complainant, financial loss, harassment and mental anguish suffered by the complainant. (7) A copy of the Award shall be sent to the complainant and the bank. (8) An Award shall not be binding on a bank against which it is passed unless the complainant furnishes to it, within a period of 15 days from the date of receipt of copy of the Award, a letter of acceptance of the Award in full and final settlement of his claim in the matter. If the complainant does not accept the Award passed by the Banking Ombudsman or fails to furnish his letter of acceptance within the said period of 15 days or within such further time not exceeding a period of fifteen days that may be granted by the Banking Ombudsman, the Award shall lapse and be of no effect. (9) The bank shall within one month from the date of receipt by it of the acceptance in writing of the Award by the complainant under sub-clause (8), or within such time not exceeding a period of fifteen days that may be granted by the Banking Ombudsman, comply with the Award and intimate compliance to the Banking Ombudsman.