RBI Ombudsman Scheme allows compensation of up to Rs 33 lakh for service lapses

New Delhi, July 15 (IANS) Customers whose complaints against banks or other financial institutions remain unresolved can now approach the Reserve Bank of India (RBI) under its new Integrated Ombudsman Scheme, which allows compensation of up to Rs 33 lakh in cases involving proven financial loss and service deficiencies.

The Reserve Bank – Integrated Ombudsman Scheme (RB-IOS), 2026 -- that came into effect from July -- provides a free and independent mechanism for customers to escalate complaints against banks and other RBI-regulated entities if they are dissatisfied with the response received or if the grievance remains unresolved within the prescribed time.

The scheme covers banks, certain non-banking financial companies (NBFCs), non-bank prepaid payment instrument issuers, credit information companies and other regulated entities notified by the RBI.

In addition, customers must first lodge their complaint with the concerned financial institution. If the complaint is rejected, not resolved within the stipulated period or the customer is not satisfied with the response, it can be escalated to the RBI Ombudsman.

Under the framework, the RBI Ombudsman can award compensation of up to Rs 30 lakh for consequential financial losses arising from a deficiency in service. Moreover, compensation of up to Rs 3 lakh may be granted towards the complainant's time, expenses, harassment and mental anguish, taking the total possible compensation to Rs 33 lakh.