SYLLABUS

GS-3: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment.

Context: The Reserve Bank of India (RBI) has launched the integrated ombudsman scheme to simplify complaint resolution for customers, and will be effective from July 1, 2026, replacing the earlier RB-IOS 2021.

More on the News: 

• RBI will establish a centralised receipt and processing centre (CRPC) to conduct initial scrutiny of complaints received through electronic mode (email) and physical form to assess their admissibility under the provisions of the scheme, the central bank said while releasing the revised norms on the Integrated Ombudsman Scheme.

Key features of the Reserve Bank--Integrated Ombudsman Scheme 2026

• Aims and Objective: 

• To provide more substantial relief for serious service deficiencies, reflecting the growing value and complexity of digital transactions.  
• To fix problems related to poor service from financial entities regulated by the RBI.
• To resolve complaints quickly without legal battles.

• Coverage: 

• all banks (including commercial banks, regional rural banks, state and central co-operative banks, and urban co-operative banks with deposits of Rs 50 crore or more)
• non-banks (non-banking financial companies that accept deposits or have assets over Rs 100 crore and engage in customer dealings are also included),
• all non-bank prepaid payment issuers, such as digital wallets
• credit information companies that handle credit scores.

                 Regulated entities must display scheme details in branches and websites, appoint a nodal officer, and comply fully—or face RBI action.

• Exclusion: Housing finance and core investment companies.

• Compensation limit: increased the maximum compensation the ombudsman can award by 50% to Rs 30 lakh for consequential losses along with Rs 3 lakh for stress/expenses, up from Rs 20 lakh and Rs 1 lakh respectively in the previous scheme.

• The new scheme also has no limit on the overall value of the dispute itself. 

• Issues Covered: The scheme covers issues like delays in services, unfair charges, or mishandling of accounts. 

• Dedicated Portal: Complaints can be filed online through the RBI's complaint management system portal.

• Appointment: The RBI can appoint one or more of its officers as RBI Ombudsman and Deputy Ombudsman (generally for a period of three years at a time), to carry out the functions entrusted to them under the Scheme.

• Responsibility to RBI Ombudsman: 

• power to provide compensation up to Rs 30 lakh for any consequential loss suffered by the complainant. 
• provide compensation up to Rs 3 lakh for the loss of the complainant’s time, expenses incurred, harassment/mental anguish suffered, if any, by the complainant.
• facilitating settlements, awarding compensation up to specified caps, quickly closing simple cases, and publishing reports in the public interest.

• Higher Appeal: If a customer is unhappy with the decision of the Ombudsman, he/she can appeal to the appellate authority (RBI's executive director) within 30 days. 

• Entities can appeal too, but only with senior approval and not if they ignored document requests.

Significance of the Scheme

• Citizen-centric Policy: empowers everyday customers by offering a hassle-free alternative to lawsuits. 

• One Nation, One Ombudsman: Customers no longer need to figure out which Ombudsman scheme applies and complaints against any covered entity go under a single streamlined mechanism. 

• Consumer protection: a step toward better consumer protection in finance, as it acts like a safety net for banking woes.

• Policy Continuity: It repeals the old 2021 scheme but handles pending cases under the prior rules, promoting ease of doing business.