Customers dissatisfied with unresolved complaints against banks or financial institutions can now seek recourse through the Reserve Bank of India’s (RBI) new Integrated Ombudsman Scheme. Effective from July, the Reserve Bank – Integrated Ombudsman Scheme (RB-IOS), 2026, offers a free and independent platform for customers to escalate grievances if they are unhappy with the response received or if the issue remains unresolved within the specified time frame. This scheme encompasses banks, specific non-banking financial companies (NBFCs), non-bank prepaid payment instrument issuers, credit information companies, and other entities regulated by the RBI.
Under this framework, customers are required to first file a complaint with the concerned financial institution. If the complaint is rejected, not resolved within the stipulated time, or if the customer is unsatisfied with the response, they have the option to escalate the matter to the RBI Ombudsman. The RBI Ombudsman has the authority to grant compensation of up to Rs 30 lakh for financial losses incurred due to service deficiencies. Additionally, compensation of up to Rs 3 lakh can be awarded for the complainant’s time, expenses, harassment, and mental anguish, totaling a possible compensation of Rs 33 lakh.
It is important to note that the compensation is not automatic and is contingent upon the specifics of each case. The complainant must demonstrate that the regulated entity’s service deficiency directly resulted in measurable financial loss or hardship. To support their claim before the Ombudsman, customers are advised to retain documentary evidence such as complaint acknowledgment numbers, emails, screenshots, transaction records, and responses from the financial institution. Customers planning to approach the Ombudsman should have on hand a copy of the complaint submitted to the bank or regulated entity, the complaint reference number, account or transaction details, copies of the institution’s responses, supporting documents, and a clear explanation of the loss suffered and the relief sought.
