How RBI’s Integrated Ombudsman Scheme Resolves Customers’ Complaints? 10 Things to Know

RBI’s Integrated Ombudsman Scheme: Another significant thing to note is that the scheme adopts ‘One Nation One Ombudsman’ approach, which means that customers can file complaints from anywhere in India and they will be handled by the nearest ombudsman office.

New Delhi: The Reserve Bank of India (RBI) has launched the Integrated Ombudsman Scheme to provide a simple and effective way for customers of various financial services to resolve their complaints. This scheme was launched by Prime Minister Narendra Modi on November 12, 2021.

Notably, the Integrated Ombudsman Scheme integrates the erstwhile three Ombudsman schemes of RBI namely, (i) the Banking Ombudsman Scheme, 2006; (ii) the Ombudsman Scheme for Non-Banking Financial Companies, 2018; and (iii) the Ombudsman Scheme for Digital Transactions, 2019.

These schemes had limited and different grounds of complaints and limited coverage of REs, apart from jurisdiction related restrictions. RB-IOS, 2021 provides for cost-free redress of customer complaints involving deficiency in services rendered by entities regulated by RBI, if not resolved to the satisfaction of the customers or not replied to within a period of 30 days by the RE.

Here are 10 things you need to know about this scheme:

1. Integrated Ombudsman Scheme integrates the existing three Ombudsman schemes of RBI namely, (i) the Banking Ombudsman Scheme, 2006; (ii) the Ombudsman Scheme for Non-Banking Financial Companies, 2018; and (iii) the Ombudsman Scheme for Digital Transactions, 2019.
2. Notably, the Integrated Ombudsman Scheme covers a wide range of regulated entities such as all commercial banks, Non-Banking Financial Companies (NBFCs), Payment System Participants, most Primary (Urban) Cooperative Banks, and Credit Information Companies.
3. With the launch of this scheme, customers can file complaints for any reason that amounts to deficiency in service, such as delay, non-payment, overcharging, mis-selling, fraud, etc, unless it falls under the exclusions listed in the Scheme.
4. Another significant thing to note is that the scheme adopts ‘One Nation One Ombudsman’ approach, which means that customers can file complaints from anywhere in India and they will be handled by the nearest ombudsman office.
5. To file or pursue complaints, customers do not have to pay any fee or charges under the scheme. The ombudsman scheme will also not charge any fee or expenses from the regulated entities for handling the complaints.
6. Regulated entities just need to resolve or reply to the complaints within a period of 30 days from the date of receipt of complaint.
7. The ombudsman can also award compensation up to Rs 20 lakh for loss suffered by the customer due to deficiency in service and up to Rs 1 lakh for mental agony and harassment caused by the regulated entity.
8. If any customer is aggrieved by the decision of the ombudsman, they can file an appeal within 30 days from the date of receipt of the award or rejection letter to the Appellate Authority.
9. However, if the regulated entity fails to comply with the award or rejection letter of the ombudsman within 30 days from the date of receipt, the ombudsman can impose a penalty of Rs 1 lakh per day, subject to a maximum of Rs 1 crore, on the regulated entity.
10. Moreover, customers can file complaints online on https://cms.rbi.org.in and track the status of their complaints and view the details of the ombudsman offices on the website.