Salient features of Integrated Ombudsman Scheme, 2021

Updated on 08.08.2022 originally posted on 12.11.2021

RBI vide notification dated August 5, 2022, made a partial modification to the notification to CEPD.PRD.No.S873/13.01.001/2021-22 dated November 12, 2021. According to the above modification modification ‘Credit Information Company’ as defined in the Credit Information Companies (Regulation) Act, 2005, shall also be treated as a ‘Regulated Entity’ for the purpose of the Scheme”.

“The Reserve Bank of India, being satisfied that it is in the public interest to do so, and to provide an avenue for cost-free alternate grievance redress to customers of regulated entities covered under the RBIOS 2021 (the Scheme) for grievances against Credit Information Companies, hereby directs that the ‘Credit Information Company’ as defined in the Credit Information Companies (Regulation) Act, 2005, shall also be treated as a ‘Regulated Entity’ for the purpose of the Scheme”, RBI said.

“As a result, the Scheme shall also be applicable to Credit Information Companies to the extent not specifically excluded under the Scheme”, the circular added. It is also informed that the amendment in the Scheme shall come into force w.e.f. September 1, 2022.

The integrated Ombudsman Scheme 2021 of RBI was launched in November 2021 in virtual mode by Hon’ble Prime Minister Shri.Narendra Modi.

The integrated Ombudsman Scheme, 2021 emphasizes strengthening the grievance redress mechanism for consumers of various services provided by the RBI regulated entities. The existing ombudsman schemes like the Banking Ombudsman Scheme, 2006; the Ombudsman Scheme for Non-Banking Financial Companies, 2018; the Ombudsman Scheme for Digital Transactions, 2019; are being integrated into a single scheme which will offer the benefit of a single platform to customers for getting speedy resolution of their grievances. In addition to integrating the above three existing schemes, Non-Scheduled Primary Co-operative Banks with deposit sizes of ₹50 crore and above are also included under the ambit of ombudsman scheme 2021. “The Scheme adopts ‘One Nation One Ombudsman’ approach by making the RBI Ombudsman mechanism jurisdiction neutral,” said RBI. This integrated scheme will reinforce confidence and trust in the financial system, it further said.

The salient features of the Scheme mentioned by RBI are as under:

•  It will no longer be necessary for a complainant to identify under which scheme he/she should file complaint with the Ombudsman.
•     The Scheme defines ‘deficiency in service’ as the ground for filing a complaint, with a specified list of exclusions. Therefore, the complaints would no longer be rejected simply on account of “not covered under the grounds listed in the scheme”.
•  The Scheme has done away with the jurisdiction of each ombudsman office.
•  A Centralised Receipt and Processing Centre have been set up at RBI, Chandigarh for receipt and initial processing of physical and email complaints in any language.
•  The responsibility of representing the Regulated Entity and furnishing information in respect of complaints filed by customers against the Regulated Entity would be that of the Principal Nodal Officer in the rank of a General Manager in a Public Sector Bank or equivalent.
• The Regulated Entity will not have the right to appeal in cases where an Award is issued by the ombudsman against it for not furnishing satisfactory and timely information/documents.

The Executive Director in charge of the Consumer Education and Protection Department of RBI would be the Appellate Authority under the Scheme.

Complaints can continue to be filed online on https://cms.rbi.org.in. Complaints can also be filed through the dedicated e-mail or sent in physical mode to the ‘Centralised Receipt and Processing Centre’ set up at Reserve Bank of India, 4th Floor, Sector 17, Chandigarh – 160017 in the format. Additionally, a Contact Centre with a toll-free number – 14448 (9:30 am to 5:15 pm) – is also being operationalized in Hindi, English, and in eight regional languages to begin with and will be expanded to cover other Indian languages in due course. The Contact Centre will provide information/clarifications regarding the alternate grievance redress mechanism of RBI and guide complainants in filing a complaint.

A copy of the Scheme is available on the RBI website and on the CMS portal (https://cms.rbi.org.in). The Scheme will be effective from today.