The Reserve Bank of India's revamped Integrated Ombudsman Scheme came into effect on Wednesday, introducing a comprehensive framework for resolving customer complaints against banks, certain non-banking financial companies (NBFCs), prepaid payment instrument (PPI) issuers and credit information companies. According to reports from Business Standard, the 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.
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. As reported by Business Standard, 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, 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 allows compensation of up to ₹30 lakh for consequential losses and up to ₹3 lakh for loss of time, expenses, harassment and mental anguish. According to Business Standard, awards can be appealed before the Appellate Authority within the prescribed timelines. 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 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. As reported by Business Standard, complaints and appeals filed under the 2021 scheme will continue to be governed by the earlier framework. The new framework provides a unified mechanism covering banks, eligible NBFCs, prepaid payment instrument issuers and credit information companies under a single regulatory framework.
