NOT ENOUGH MERIT TO BRING BANKS UNDER CLASS ACTION SUITS: RBI

The Reserve Bank said that there may not be "enough merit" to include banks under the purview of class action suits.

The new Companies Bill , 2009, that seeks to replace the erstwhile Companies Bill, 1956, has proposed to include banks under the purview of class action suits.

However, the RBI said that since the revised system of Ombudsman has served well to redress customers' grievances, there may not be merit in bringing banks under the purview of class action suits.

"Since the revised system of Ombudsman scheme has served well as a mechanism to provide quick and inexpensive redress of customers' grievances against banks, there may not be enough merit in extending the provision to banks under the new Bill," it said.

SOURCE: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/Not-enough-merit-to-bring-banks-under-class-action-suits-RBI/articleshow/6889879.cms