Revised Integrated Ombudsman Scheme

The Reserve Bank of India (RBI) has issued a revised Integrated Ombudsman Scheme, which will come into force from July 1, 2026

What is an Ombudsman?

An ombudsman is an independent official, who investigates and resolves complaints from the public against organizations (government agencies, companies, etc.) to ensure fair, lawful, and reasonable treatment, acting as a neutral third party for mediation and redressal.

Why an Integrated Ombudsman Scheme is Needed

• Expanding Financial Ecosystem: India’s financial system has expanded rapidly, covering banks, NBFCs, fintech firms, digital payment systems, and other regulated entities.
• Fragmented Grievance Redressal: Multiple ombudsman frameworks led to jurisdictional ambiguity, unclear escalation pathways, and inconsistent resolution timelines for customers.
• Need for Consolidation: The RB-IOS, 2026 seeks to address these gaps by creating a single, integrated, and streamlined grievance redressal structure

Reserve Bank – Integrated Ombudsman Scheme, 2021

• The Reserve Bank – Integrated Ombudsman Scheme (RB-IOS), 2021 was launched in November 2021.
• The scheme consolidates and replaces three earlier RBI ombudsman mechanisms:
  • Banking Ombudsman Scheme, 2006
  • Ombudsman Scheme for Non-Banking Financial Companies, 2018
  • Ombudsman Scheme for Digital Transactions, 2019
• Legal Basis: The scheme was framed by the RBI using powers under:
  • Section 35A of the Banking Regulation Act, 1949
  • Section 45L of the RBI Act, 1934
  • Section 18 of the Payment and Settlement Systems Act, 2007
• Objective: To provide a cost-free, efficient, and uniform grievance redressal mechanism for customers of RBI-regulated entities when complaints relating to deficiency in service are not resolved within 30 days.
• Coverage Expansion: In addition to integrating the earlier schemes, RB-IOS, 2021 expanded coverage to include non-scheduled primary co-operative banks with deposits of ₹50 crore or more. 
• One Nation, One Ombudsman Approach: The scheme is jurisdiction-neutral, removing territorial limitations and ensuring uniform access to grievance redress across the country.

Key Features

• Grounds for Complaint:
  • “Deficiency in service” is the sole ground for filing complaints, subject to a defined list of exclusions.
  • Complainants are no longer required to identify the specific ombudsman scheme under which their complaint falls.
  • The territorial jurisdiction of individual ombudsman offices has been eliminated.
• Centralised Complaint Processing:
• • A Centralised Receipt and Processing Centre (CRPC) has been established at RBI, Chandigarh to receive and process complaints submitted physically or via email, in any language.
• Role of Principal Nodal Officer: Each regulated entity must appoint a Principal Nodal Officer (of at least General Manager rank or equivalent) to represent it and furnish information during complaint proceedings.
• Appeal Provisions: 
  • The Executive Director, Consumer Education and Protection Department, RBI, acts as the Appellate Authority under the scheme.
  • Regulated entities cannot appeal against an award if it is passed due to their failure to provide timely or satisfactory information.
• Mode of Filing Complaints: Complaints can be filed online through the RBI Complaint Management System (CMS) portal, via designated email, or in physical form to the CRPC

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Key Features of the Revised Integrated Ombudsman Scheme,RB-IOS, 2026 Scheme

• Appointment of Ombudsman:
  • The RBI will appoint one or more RBI Ombudsmen and RBI Deputy Ombudsmen from among its officers to discharge functions under the scheme.
  • Such appointments are generally made for a fixed tenure of three years.
• Entities Covered Under the Scheme:
  • Commercial banks, Regional Rural Banks, State and Central Cooperative Banks, and Urban Cooperative Banks with deposits of ₹50 crore or more.
  • NBFCs that accept deposits or have assets exceeding ₹100 crore and deal with customers.
  • Prepaid Payment Instrument (PPI) issuers, such as digital wallets.
  • Credit Information Companies, which handle credit scores and reports
• Entities Excluded: The scheme does not cover housing finance companies and core investment companies.
• Centralised Receipt and Processing Mechanism
  • Centralised Receipt and Processing Centre (CRPC): RBI will establish one or more Centralised Receipt and Processing Centres to receive and process all complaints filed under the Scheme.
  • Multiple Submission Modes: Complaints received via email, post, or physical submission, including hand-delivered complaints, will be forwarded to the CRPC for processing.
  • Online Portal: Complaints may be lodged online through the RBI’s Complaint Management System (CMS) portal at https://cms.rbi.org.in.
• Who Can File a Complaint
  • Eligible Complainants: Any customer aggrieved by an act or omission of a Regulated Entity resulting in deficiency in service may file a complaint.
  • Mode of Filing: Complaints can be filed personally or through an authorised representative.
• Precondition:
  • A customer must first approach the concerned regulated entity.
  • The ombudsman can be approached only if no response is received within 30 days or if the customer is dissatisfied with the response
• Compensation:
  • Consequential Loss: The RBI Ombudsman may award compensation of up to ₹30 lakh for any consequential loss suffered by the complainant.
  • Non-Pecuniary Loss: Additional compensation of up to ₹3 lakh may be awarded for loss of time, expenses incurred, harassment, or mental anguish suffered by the complainant.
  • Settlement and Awards: The Ombudsman may facilitate settlements or pass an Award where necessary.
• Appeal Mechanism: Both the complainant and the regulated entity may file an appeal before the Appellate Authority within 30 days of the Ombudsman’s decision.
• Nodal Officer Requirement: Each Regulated Entity must appoint a Principal Nodal Officer at its Head Office to coordinate with RBI and furnish information related to complaints.
• Transparency and Accountability:
  • Annual Report: In the public interest, the RBI will publish an annual report on the functioning and activities carried out under the Integrated Ombudsman Scheme.

Compensation Limits

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