The Reserve Bank of India (RBI) notified the Reserve Bank – Integrated Ombudsman Scheme (RB-IOS), 2026 on 16 January 2026, replacing the 2021 scheme with the objective of further streamlining customer grievance redressal across RBI-regulated entities. The revised scheme will come into force from 1 July 2026 and reinforces the philosophy of “One Nation, One Ombudsman”, supported by technology-enabled, time-bound processes.
Key Objectives
RB-IOS, 2026 aims to provide a simple, cost-free, expeditious, and non-adversarial mechanism for resolving complaints arising from deficiencies in services rendered by regulated entities. The scheme strengthens consumer protection through uniform standards, clearer procedures, and enhanced data analytics, enabling more effective supervisory oversight by RBI. Proceedings under the scheme are summary in nature and are not constrained by strict rules of evidence.
Coverage and Scope
The scheme applies to complaints relating to services provided by a wide range of RBI-regulated entities, including:
* Commercial Banks, Regional Rural Banks, and Co-operative Banks (with deposits of ₹50 crore and above)
* Non-Banking Financial Companies permitted to accept deposits or having customer interfaces (with asset size of ₹100 crore and above)
* Non-bank Prepaid Payment Instrument (PPI) issuers
* Credit Information Companies
Notably, RB-IOS, 2026 removes any monetary ceiling on the value of disputes that may be brought before the Ombudsman, thereby widening access for customers.
Powers of Ombudsman and Compensation
RBI will appoint Ombudsmen and Deputy Ombudsmen for a tenure of **three years. The compensation framework has been significantly enhanced:
* Up to ₹30 lakh for actual and consequential financial loss (earlier ₹20 lakh)
* Up to **₹3 lakh** for loss of time, expenses incurred, harassment, or mental anguish (earlier ₹1 lakh)
All complaints will be received and processed through a **Centralised Receipt and Processing Centre (CRPC)**, using online portals, email, or physical submission, ensuring standardised handling and tracking.
Filing and Appeal Process
Customers are required to first exhaust the internal grievance redressal mechanism of the concerned regulated entity. If unresolved, a complaint may be filed with the CRPC within 90 days, a reduced timeframe aimed at quicker resolution.
Appeals against the Ombudsman’s decision may be preferred by either the complainant or the regulated entity before the Appellate Authority within 30 days. Regulated entities must designate Principal Nodal Officers to coordinate and ensure timely compliance with the scheme.
Implications for Stakeholders
RB-IOS, 2026 marks a further shift towards a consumer-centric, digitally driven grievance redressal ecosystem. For banks and financial institutions, it necessitates stronger internal grievance handling, closer monitoring of complaint trends, and improved compliance readiness. For customers, the scheme offers **simpler access, faster resolution, and enhanced compensation safeguards**, reinforcing trust in the regulated financial system.
