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RBI Finalizes Integrated Ombudsman Scheme, Effective July 1, 2026

The regulator kept higher compensation ceilings to strengthen consumer grievance resolution.

Overview

  • The RBI Ombudsman can award up to Rs 30 lakh for consequential loss and up to Rs 3 lakh for loss of time, expenses, harassment or mental anguish.
  • There is no cap on the dispute amount that can be brought to the Ombudsman, and compensation is paid by the regulated entity found at fault.
  • The right of appeal for regulated entities against Ombudsman awards has been restored, with appeals permitted within 30 days of the complainant’s acceptance.
  • RBI will appoint Ombudsman and Deputy Ombudsman for generally three-year terms and will set up a Centralised Receipt and Processing Centre, with online complaint filing enabled.
  • The scheme refines maintainability and timelines by aligning escalation windows for categories such as unauthorised transactions and reinstating a 15-day response time; proposals for filing fees and treating FIR-based cases as non-maintainable were rejected.