MUMBAI: The Reserve Bank has launched the integrated ombudsman scheme simplifying complaint resolution for customers and covers all banks, non-banks, digital wallets, and credit information companies and has increased from maximum compensation by 50% to Rs 30 lakh for losses along with Rs 3 lakh for stress/expenses, up from Rs 20 lakh and Rs 1 lakh respectively in the previous scheme.
Called the Reserve Bank--Integrated Ombudsman Scheme 2026, empowers the ombudsman to settle claims up to Rs 30 lakh, massively up from Rs 20 lakh in the previous 2021 scheme, and will be effective July 1, the apex bank said Friday. When it comes to payments towards stress and expenses, the new scheme hikes by two-fold to Rs 3 lakh from Rs 1 lakh in the previous scheme of 2021 which will be replaced now with the new one that aims to provide a quick and fair way to handle grievances without going to court and has comments and feedback from public.
The updated Reserve Bank Integrated Ombudsman Scheme, 2026, has increased the maximum compensation the ombudsman can award to Rs 30 lakh for consequential losses suffered by a complainant. Previously, the limit under the 2021 scheme was Rs 20 lakh for financial loss and an additional Rs 1 lakh for mental agony/harassment.
The new scheme also has no limit on the overall value of the dispute itself. The changes aim to provide more substantial relief for serious service deficiencies, reflecting the growing value and complexity of digital transactions. Complaints can be filed online through the RBI's complaint management system portal.
The scheme is designed to fix problems related to poor service from financial entities regulated by the RBI. The scheme covers issues like delays in services, unfair charges, or mishandling of accounts. It starts on July 1 and the goal is to resolve complaints quickly without legal battles.
For any consequential loss suffered by the complainant, the RBI Ombudsman shall have the power to provide a compensation up to Rs 30 lakh. In addition, the Ombudsman also has the power to provide a compensation up to Rs 3 lakh for the loss of the complainant’s time, expenses incurred, harassment/mental anguish suffered, if any, by the complainant.
This means that even though, there's no limit on the dispute amount, but compensation for losses is capped at Rs 30 lakh, plus up to Rs 3 lakh for stress or expenses.
The entities covered under the new scheme include commercial banks, regional rural banks, state and central co-operative banks, and urban co-operative banks with deposits of Rs 50 crore or more.
Additionally, non-banking financial companies that accept deposits or have assets over Rs 100 crore and engage in customer dealings are also included, but the scheme excludes housing finance and core investment companies. Furthermore, all non-bank prepaid payment issuers, such as digital wallets, and credit information companies that handle credit scores, are part of this list.
The RBI Ombudsman acts like a judge for these disputes. They consider RBI guidelines and fair practices. They can add other entities to the case if involved in the problem. The key powers include facilitating settlements, awarding compensation up to specified caps, quickly closing simple cases, and publishing reports in the public interest.
Deputies handle basic closures, while full Ombudsmen deal with complex ones. If a customer is unhappy with the decision of the Ombudsman, she can appeal to the appellate authority (RBI's executive director) within 30 days. Entities can appeal too, but only with senior approval and not if they ignored document requests.
The authority can uphold, change, or send back the case. Regulated entities must display scheme details in branches and websites, appoint a nodal officer, and comply fully—or face RBI action.
The new integrated Ombudsman scheme empowers everyday customers by offering a hassle-free alternative to lawsuits. It repeals the old 2021 scheme but handles pending cases under the prior rules. Overall, it's a step toward better consumer protection in finance as it acts like your safety net for banking woes.