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.
However, the RBI has clarified that the compensation is not automatic and depends on the facts of each case.
The complainant must establish that the regulated entity’s deficiency in service directly caused measurable financial loss or hardship.
According to the framework, customers are advised to preserve documentary evidence such as complaint acknowledgement numbers, emails, screenshots, transaction records and responses from the financial institution, as these help establish the extent of the loss and support their claim before the Ombudsman.
The RBI said customers planning to approach the Ombudsman should keep ready 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 response, supporting documents and a clear explanation of the loss suffered and the relief sought.
