RBI Overhauls Ombudsman Framework: Issues Draft Schemes for Banks & Regulated Entities to Strengthen Customer Protection [Read Press Release]
The Reserve Bank has released a notification and two draft schemes seeking feedback on the Ombudsman Framework.
The Reserve Bank of India issued three announcements on October 7, 2025, indicating a complete overhaul and broadening of the customer grievance redress architecture for banks and other regulated entities.
Draft Reserve Bank - Ombudsman Scheme, 2025
The first release sets out the draft Reserve Bank – Ombudsman Scheme, 2025, which revises the Reserve Bank – Integrated Ombudsman Scheme (RB-IOS) that was launched on November 12, 2021. The 2025 scheme proposes updates based on operational experience, stakeholder feedback and global best practices and aims to refine the integrated ombudsman mechanism that provides an expeditious and cost-effective alternate grievance redress route.
The press release and supporting material are available on the RBI website at the scheme page and the related press release entry; comments may be sent to cgmcepd@rbi.org.inor helpdoc@rbi.org.in.
Draft Master Direction - Internal Ombudsman for Regulated Entities, 2025
The second release republishes the draft Master Direction that updates the Internal Ombudsman framework institutionalised by the Master Direction from December 29, 2023. The Draft Master Direction seeks to strengthen internal resolution mechanisms to enable a higher number of complaints to be resolved meaningfully at source. The draft text and explanatory material can be accessed at the RBI’s content page for the direction and the master direction listing; feedback may be furnished to iocepd@rbi.org.in or through the Connect2Regulate portal.
Inclusion of Co-operative Banks under RB-IOS, 2021
The third announcement is a Notification issued under Section 35A of the Banking Regulation Act, 1949, bringing State Co-operative Banks and Central Co-operative Banks within the scope of the Reserve Bank – Integrated Ombudsman Scheme, 2021 with effect from November 1, 2025. The Notification and press release are available at the RBI’s notification page and the related press release entry; Enquiries, if any may be directed to helpdoc@rbi.org.in.
All three announcements have been issued by the RBI in a coordinated effort to enhance grievance redressal and consumer protection across the regulated financial sector. Open the attached document to access the same.
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