RBI Strengthens Grievance Redressal via Internal Ombudsman

Circular No. CEPD.PRD.No.S1027/13.01.019/2025-26, Dated: 14.01.2026

1. Introduction

Reserve Bank of India (RBI) has notified the Internal Ombudsman Directions, 2026 to strengthen the internal grievance redressal framework across banks and select regulated entities.

2. Entities Covered Under The Directions

The Directions apply to commercial banks, payments banks, small finance banks, non-banking financial companies (NBFCs), non-bank prepaid payment instrument (PPI) issuers, and credit information companies, ensuring uniform grievance handling standards.

3. Appointment And Tenure Of Internal Ombudsman

The framework lays down provisions relating to the appointment, tenure, and independence of the Internal Ombudsman. This aims to ensure impartial review of customer complaints within regulated entities.

4. Review Of Rejected Or Partially Resolved Complaints

Under the Directions, complaints that are partially resolved or proposed to be rejected must be reviewed by the Internal Ombudsman before final rejection. Timelines have been prescribed to ensure faster and more effective grievance resolution.

5. Conclusion

The Internal Ombudsman Directions, 2026 reinforce RBI’s focus on consumer protection and accountability. By strengthening internal grievance mechanisms, the Directions seek to improve transparency, trust, and timely resolution of customer complaints across the regulated ecosystem.

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