RBI Ombudsman Scheme 2026: Customers Can Seek Compensation Of Up To Rs 33 Lakh

Customers who are unhappy with the response received from their bank or another regulated financial entity can approach the Reserve Bank of India (RBI) under the Reserve Bank Integrated Ombudsman Scheme (RB-IOS), 2026. The scheme, which came into force on July 1, 2026, provides a free mechanism for resolving complaints related to deficiency in service.

The RB-IOS, 2026 covers banks, certain non-banking financial companies (NBFCs), non-bank prepaid payment instrument issuers, credit information companies, along with other regulated entities notified under the scheme. It offers customers an alternative to resolving disputes without going through a court process.

Compensation Available Under The Scheme

The RBI has clarified that there is no monetary limit on the value of a dispute that can be brought before the RBI Ombudsman.

Where a customer suffers consequential loss because of a deficiency in service, the Ombudsman can award compensation of up to Rs 30 lakh. Separately, compensation of up to Rs 3 lakh can be awarded for the complainant’s loss of time, expenses incurred, harassment, or mental anguish. The total compensation that may be awarded under the scheme can, therefore, go up to Rs 33 lakh.

Documents Needed To File A Complaint

To file a complaint, customers must provide basic information, such as their name, mobile number, postal address and email ID, if available. They also need to furnish details of the regulated entity, the complaint or acknowledgement number issued by it, relevant account or transaction details, copies of supporting documents, and a description of the grievance along with the relief sought.

The RBI Ombudsman is an officer appointed by the central bank to examine complaints relating to deficiency in service by regulated entities covered under the scheme.

RBI Discusses Customer Grievance Redressal

The RBI, on July 13, 2026, held the third annual conference of Internal Ombudsmen in Mumbai to review customer grievance redressal systems and discuss ways to improve the quality and speed of complaint resolution.

In his keynote address, RBI Deputy Governor Swaminathan J said that Internal Ombudsmen should play a more proactive role in ensuring that customer complaints are resolved in a meaningful, fair and timely manner.

He had also mentioned that a stronger Internal Ombudsman framework should reduce the need for customers to take their complaints outside the organisation. He further called upon the boards and senior management of regulated entities to strengthen the Internal Ombudsman mechanism and use its findings to improve customer service and grievance redressal processes.