Reserve Bank – Integrated Ombudsman Scheme, 2021 (RB-IOS, 2021)

The Reserve Bank – Integrated Ombudsman Scheme, 2021 (RB-IOS, 2021) aims to simplify the process of addressing customer grievances related to the services of Regulated Entities (REs) like banks, Non-Banking Financial Companies (NBFCs), Payment System Participants (PSPs), and Credit Information Companies. Customer can file complaint in RBI – IOS if RE (Regulated Entity) is not able to provide resolution in 30 days. Here’s a breakdown of key points regarding the scheme:

Key Highlights of RB-IOS, 2021:

  1. One Centralized System: The scheme merges three previous ombudsman schemes into a single, jurisdiction-neutral platform, enabling customers to lodge complaints about deficiencies in services across REs.
  2. Coverage Expansion: The scheme includes additional REs like Non-Scheduled Primary (Urban) Co-operative Banks with deposits above ₹50 crore and Credit Information Companies.
  3. No Cost for Filing Complaints: Customers can file complaints for free, and no third-party agencies need to be involved.

Types of Complaints Not Covered Under RB-IOS, 2021:

Certain types of complaints are considered non-maintainable under the scheme:

  • Complaints filed with the ombudsman without first contacting the RE or before 30 days from lodging the initial complaint with the RE.
  • Complaints made after one year from receiving the RE’s response, or where no reply is received, later than one year and 30 days after the initial complaint.
  • Complaints already handled by the Ombudsman, or those that are commercial decisions (like loan approvals) or disputes between REs.
  • Frivolous, abusive, or incomplete complaints or those pending in a court/tribunal.

Complaint Filing Guidelines:

  • Customers must first contact the RE and wait 30 days for a response. If unsatisfied or if no reply is received within this period, they can file a complaint with the RBI Ombudsman.
  • Complaints should be lodged within one year of receiving the RE’s response or one year and 30 days from the original complaint date (if no response is received).

Monetary Limit:

  • No limit on the amount involved in the disputed transaction.
  • Compensation for losses due to the RE’s actions is capped at ₹20 lakh.
  • Additionally, the Ombudsman may award up to ₹1 lakh for mental agony, harassment, or time loss experienced by the complainant.

This scheme provides a streamlined, accessible platform for resolving issues related to financial services, ensuring transparency and fairness for consumers.