Role of RBI Ombudsman

RBI Ombudsman is an independent grievance redressal authority for customers of RBI-regulated entities. It provides a free, accessible and non-adversarial mechanism to resolve complaints when a regulated entity has not satisfactorily addressed a customer’s complaint. “Apart from resolving individual disputes, the Lokpal also promotes greater accountability, transparency and higher customer service standards in the financial sector,” says Siddharth Karnani, partner, King Stubb & Kasiva, Advocates and Attorneys.

Institutions covered under the scheme

The scheme covers a wide range of RBI-regulated entities, including scheduled commercial banks, regional rural banks, eligible co-operative banks, NBFCs, prepaid payment instrument (PPI) issuers, credit information companies and other regulated payment system participants. It offers traditional banking and digital financial services to customers with a uniform grievance redressal framework.

How is the 2026 plan different?

The 2026 plan is based on the ‘One Nation, One Ombudsman’ framework, streamlining the grievance redressal process and strengthening consumer protection. Karnani says, “The key changes include higher compensation limits, expanded role of the Deputy Ombudsman in handling complaints, greater clarity on complaint handling and appeals and wider scope to address service deficiencies. Together, these changes aim to make the complaint redressal process more efficient, transparent and responsive to the evolving financial services landscape.”

The revised scheme should boost consumer confidence by making complaint redressal faster, more accessible and more effective. Higher compensation limits provide stronger relief for financial loss and harassment, while a streamlined process can speed up complaint resolution. “The scheme simplifies the process through a centralized complaint-filing system through the Complaint Management System (CMS) portal and Centralized Receipt and Processing Center (CRPC), making it easier for customers to get redressal,” says Manmeet Kaur, partner, Karanjawala & Co.

However, implementation will determine the effectiveness of the revised plan. “Customers will have to complete the complaint redressal process of the concerned regulated entity before approaching the RBI Ombudsman, so immediate RBI intervention is not available. Its success will also depend on the RBI’s ability to handle the increasing volume of complaints and ensure timely resolution,” says Karnani.

Customers must first lodge their complaint through the internal grievance redressal mechanism of the concerned RBI-regulated entity. “If the complaint is rejected, remains unresolved for 30 days, or the response is unsatisfactory, they can approach the RBI Ombudsman through the RBI CMS portal or other prescribed channels, usually within 90 days,” says Karnani.

“This is a significant reduction compared to the 2021 scheme, which allowed up to one year (or one year and 30 days if no response) to file a complaint,” says Amit Kumar Nag, partner, AQUILAW.

Customers should also retain copies of their complaint, acknowledgement, correspondence and supporting documents to ensure a smooth redressal process.

Complaints that are not maintainable

Under Clause 10 of the Scheme, complaints are not admissible if they relate to commercial decisions of a regulated entity (RE), disputes between the seller and the RE, or complaints that customers have not previously raised with the RE. Nag says, “Complaints filed after the 90-day time limit, matters already pending or decided by a court, tribunal or arbitrator, employer-employee disputes and complaints not disclosing any deficiency in service are also excluded. Frivolous or vexatious complaints along with other categories specified under clause 10 may be dismissed.”

Compensation under the scheme

RBI may increase compensation from ₹20 lakh to ₹30 lakh for consequential financial loss suffered by the complainant under the Lokpal 2021 scheme. It can award up to ₹3 lakh for loss of time, expenses incurred, harassment or mental anguish, compared to ₹1 lakh earlier. “Although there is no cap on the value of the underlying dispute, the compensation payable remains subject to these caps,” says Nag.

what happens after filing

After a customer files a complaint, the CRPC conducts a preliminary investigation to determine whether the complaint is meritorious. If it accepts the complaint, it sends it to the RE, who has to respond within 15 days. Nag says, “The Lokpal first attempts to resolve the dispute through conciliation. If he fails, he passes an award, which may direct remedial action or compensation. If the RE does not respond within the stipulated time, the Lokpal may decide the case based on the available records.”

The right to appeal under the 2026 Scheme is available only against the decision passed by the RBI Ombudsman and not against every rejection or procedural order. Kaur says, “An aggrieved customer can file an appeal with the Appellate Authority within 30 days of receiving the award. The delay can be condoned up to 30 days if sufficient cause is shown. The Appellate Authority can uphold, modify, cancel or withdraw the award as permitted under the scheme.”

use planning effectively

Customers should first contact the concerned RE and carry proof of their complaint, as the Ombudsman will not accept complaints lodged directly. If the RE does not respond within the stipulated period or the reply is unsatisfactory, they should approach the Ombudsman within the time limit of 90 days. “They should submit complete supporting documents, clearly state the deficiency in service and relief sought and avoid filing complaints that are commercial in nature or already pending before any court or tribunal,” says Nag.

Kaur says customers should avoid complaints that are vague, incomplete, duplicate or already litigated, as the ombudsman may reject them.

• Prior Complaint and Acknowledgment/Reference Number
• Reply from regulated entity, if any
• Account, loan or card details, and transaction reference number or unique transaction reference (UTR)
• Supporting Evidence (Statement, Screenshot, SMS/Email)
• Brief complaint note with relief sought
• Authorization letter, if filed through a representative