Summary of this article
RBI's revised Ombudsman Scheme came into effect from July 1.
Customers must first approach regulated entities before RBI Ombudsman.
Scheme allows compensation of up to Rs 30 lakh.
The Reserve Bank of India (RBI) has brought its revised Integrated Ombudsman Scheme into effect from July 1, 2026, changing the process through which customers can seek redressal for complaints against banks and other regulated financial entities.
The revised scheme replaces the Integrated Ombudsman Scheme, 2021, and applies to banks, eligible non-banking financial companies (NBFCs), prepaid payment instrument (PPI) issuers and credit information companies. Complaints and appeals already filed under the earlier framework will continue to be dealt with under the old rules.
One System For Customer Complaints
The scheme continues with the “One Nation, One Ombudsman” model, allowing customers to use a single complaint redressal mechanism regardless of where they or the regulated entity are located.
Before approaching the RBI Ombudsman, customers must first lodge their complaint with the concerned regulated entity. If the entity does not respond within 30 days, or within a longer period allowed under RBI directions, National Payments Corporation of India (NPCI) guidelines or card network rules, the complaint can be taken to the Ombudsman. Customers can also approach the Ombudsman if they are not satisfied with the response received. Such complaints must generally be filed within 90 days.
What Has Changed
The revised scheme sets out detailed conditions for deciding whether a complaint can be admitted. It also gives the RBI Deputy Ombudsmen a larger role in examining complaints related to deficiencies in service and rejecting those that do not meet the prescribed conditions.
If any deficiency or discrepancy of service is established, the Ombudsman can order the regulated entity to rectify the issue or compensate the customer. Upon receiving agreement from both parties, the Ombudsman may try to settle the matter through mutual agreement.
Appeal And Compensation
Under the updated framework, compensation of up to Rs 30 lakh can be awarded for consequential losses caused by deficiency in service. Customers may also receive up to Rs 3 lakh towards loss of time, expenses, harassment and mental anguish, wherever applicable.
The scheme also provides an appeal process. If either the customer or the regulated entity is dissatisfied with the Ombudsman’s decision, an appeal can be filed before the Appellate Authority within the time limit specified under the scheme.
Alongside the revised framework, RBI has published a set of frequently asked questions (FAQs) on its website. The document explains who can file a complaint, the steps involved in the process, the grounds on which complaints may be accepted or rejected, and other operational details under the new scheme.
