Explainer: RBI notifies Integrated Ombudsman Scheme 2026; Who can complain and how

The Reserve Bank of India (RBI) on Friday issued the Reserve Bank–Integrated Ombudsman Scheme, 2026, to handle customer complaints against banks and other financial firms, as part of efforts to strengthen consumer protection and improve trust in the financial system.

The central bank had earlier released a draft of the Reserve Bank–Ombudsman Scheme, 2025 on October 7, 2025, seeking feedback from stakeholders and the general public.

The feedback received was examined and suitable modifications were incorporated in the final scheme, the RBI said.

The scheme, notified by the RBI, provides a single, integrated grievance redress mechanism for customers of RBI-regulated entities.

It will come into force on July 1, 2026, replacing the existing Integrated Ombudsman Scheme of 2021.

The earlier Reserve Bank–Integrated Ombudsman Scheme, 2021 will stand repealed from July 1, 2026, though complaints received before that date will continue to be governed by the provisions of the 2021 scheme, the RBI added.

According to the RBI, the scheme is expected to further strengthen the ombudsman framework and ensure quicker, more efficient and cost-effective resolution of complaints.

Who does it cover?

The scheme applies to a wide range of financial entities regulated by the RBI, including commercial banks, regional rural banks, state and central cooperative banks, and urban cooperative banks meeting the prescribed deposit criteria.

It also covers non-banking financial companies (NBFCs) with customer interface, non-bank prepaid payment instrument issuers, and credit information companies.

What kind of complaints can be filed?

Customers can file complaints related to deficiency in service, such as delays, failure to follow RBI directions, or inadequate customer service.

However, issues involving commercial judgment of institutions, disputes between regulated entities, employer–employee matters, or cases already before courts or tribunals are excluded.

A key condition for filing a complaint with the ombudsman 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 if the customer is dissatisfied with the reply.

Is there a cap on compensation?

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

That said, the RBI Ombudsman can award compensation of 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.

How can complaints be filed?

Complaints can be filed online through the RBI’s Complaint Management System portal, or sent by email or post to a centralised receipt and processing centre.

The process emphasises conciliation and settlement between the customer and the regulated entity. If a settlement cannot be reached, the ombudsman can pass an award after giving both sides an opportunity to be heard.

An appellate mechanism allows both customers and regulated entities to challenge an award within a specified time.