<h1>Indian Banks Must Give Written Reasons for Loan Rejections, Ombudsman Handles Complaints on Non-Compliance.</h1> Eighteen Banking Ombudsman offices across India handle complaints related to loans and advances. Banks are required to provide written reasons for loan application rejections as per the Banking Code and Standards Board of India (BCSBI) and Fair Practices Code. Non-compliance with these codes is a valid complaint under the Banking Ombudsman Scheme. The Reserve Bank of India (RBI) emphasizes that loan sanctioning and recovery are internal management functions, with each bank's Board authorized to develop suitable policies. Banks must have Board-approved loan policies detailing exposure limits, documentation, security, and interest rate factors. This information was provided by a government official in response to a parliamentary question.