RBI's new Integrated Ombudsman Scheme comes into effect from 1 July

The revamped framework broadens consumer grievance redressal, covering banks, eligible NBFCs, prepaid payment instrument issuers and credit information companies under a unified mechanism

The Reserve Bank of India's (RBI's) revamped Integrated Ombudsman Scheme came into effect on Wednesday, introducing a new framework for resolving customer complaints against banks, certain non-banking financial companies (NBFCs), prepaid payment instrument (PPI) issuers and credit information companies.

 

The revamped scheme replaces the 2021 framework and aims to provide a faster, cost-free and non-adversarial mechanism for addressing complaints related to deficiencies in service by regulated entities. Complaints and appeals filed under the 2021 scheme will continue to be governed by the earlier framework.

 

The scheme retains the "One Nation, One Ombudsman" approach, under which complaints are handled without regard to the location of the customer or the regulated entity. Under the new framework, customers must first approach the concerned regulated entity. If the entity fails to respond within 30 days — or within any longer timeline prescribed by the RBI, the National Payments Corporation of India (NPCI) or card network rules — or if the customer is dissatisfied with the response, the complaint can be escalated to the RBI Ombudsman within 90 days.

 

The scheme lays down detailed maintainability criteria and expands the role of RBI deputy ombudsmen, who can examine complaints relating to deficiencies in service and reject those that do not meet the eligibility requirements under the framework.

 

The Ombudsman may facilitate a settlement between the parties or, where a deficiency in service is established, pass an award directing the regulated entity to take remedial action or pay compensation. The scheme allows compensation of up to ₹30 lakh for consequential losses and up to ₹3 lakh for loss of time, expenses, harassment and mental anguish. Awards can be appealed before the Appellate Authority within the prescribed timelines.  The banking regulator today released a Frequently Asked Questions (FAQ) on its website regarding the integrated ombudsman scheme, aimed at improving stakeholder understanding of the issues.