RBI’s Revamped Ombudsman Framework: Strengthening Consumer Redressal in Financial Services

Why in News ?

The Reserve Bank of India has unveiled the revised Integrated Ombudsman Scheme, 2026, aimed at improving the efficiency, accessibility, and timeliness of complaint resolution for customers of banks and other regulated entities.

Background: Need for a Strengthened Grievance Redressal Mechanism

As financial services become more digital and complex, the number and nature of customer grievances have expanded across banks, NBFCs, payment service providers, and credit bureaus.

To ensure trust in the financial system, RBI has progressively streamlined grievance redressal mechanisms, culminating in the Integrated Ombudsman Scheme of 2021. The 2026 revision seeks to further consolidate processes, enhance accountability, and simplify access for consumers.

• About the Reserve Bank – Integrated Ombudsman Scheme, 2026
• The scheme is aimed at further improving the efficiency of the resolution of complaints filed by aggrieved customers of banks and other regulated entities.
• It will come into force on July 1, 2026, replacing the existing Integrated Ombudsman Scheme of 2021.
• Proceedings under the scheme shall be summary in nature and shall not be bound by formal rules of evidence, ensuring speed and flexibility in decision-making.

Institutional Structure and Administration

The Reserve Bank of India will appoint one or more of its officers as:

• RBI Ombudsman, and
• RBI Deputy Ombudsman

These officers will carry out the functions entrusted under the Scheme. Appointments will generally be made for a period of three years at a time, ensuring continuity while allowing periodic institutional refresh.

The RBI will also establish a Centralised Receipt and Processing Centre (CRPC) at one or more locations to receive and process complaints filed under the Scheme.

Coverage: Who Comes Under the Scheme ?

The entities covered under the new scheme include:

• Commercial banks
• Regional Rural Banks (RRBs)
• State and Central Co-operative Banks
• Urban Co-operative Banks with deposits of ₹50 crore or more

Additionally, the scheme includes:

• NBFCs that accept deposits or have assets over ₹100 crore and engage in customer dealings
• Non-bank prepaid payment issuers, such as digital wallets
• Credit information companies, including credit bureaus

Excluded entities: Housing finance companies and core investment companies are excluded from the scheme.

Types of Complaints: What Can and Cannot Be Filed ?

Eligible Complaints

Customers can file complaints related to:

• Deficiency in service
• Delays in service delivery
• Failure to follow RBI directions
• Inadequate customer service

Excluded Matters

The scheme does not entertain complaints involving:

• Commercial judgment of institutions
• Disputes between regulated entities
• Employer–employee matters
• Cases already pending before courts, tribunals, or other forums

A key precondition is that the customer must first approach the concerned entity. The ombudsman can be approached only if:

• There is no response within 30 days, or
• The customer is dissatisfied with the response received.

Compensation Framework Under the Scheme

There is no limit on the value of the dispute that can be brought before the ombudsman.

However, the RBI Ombudsman can award:

• Up to ₹30 lakh for consequential financial loss, and
• Up to ₹3 lakh for non-financial losses, such as harassment, mental anguish, or loss of time.

Complaint Filing Process

Complaints can be filed through:

• The RBI’s Complaint Management System (CMS) portal
• Email, or
• Post to the Centralised Receipt and Processing Centre

Complaint Handling and Appeal Process

The RBI Ombudsman (or Deputy Ombudsman) acts in a quasi-judicial role.

The process prioritises:

• Conciliation and settlement between the customer and the regulated entity.

If settlement fails:

• The ombudsman may pass an award after giving both parties an opportunity to be heard.

Appeal Mechanism

If a customer is dissatisfied:

• An appeal may be filed before the Appellate Authority (RBI’s Executive Director) within 30 days.

Regulated entities may also appeal, but:

• Only with senior management approval, and
• Not if they failed to comply with document requests during proceedings.

The appellate authority may:

• Uphold the decision,
• Modify it, or
• Remand the case for reconsideration.