Delhi High Court Stays Order Mandating Second-Level Review Of RBI Ombudsman Complaints

2026-01-10 02:07:09

(MENAFN- KNN India) New Delhi, Jan 10 (KNN) The Delhi High Court on Thursday stayed a direction issued by a single judge requiring that complaints rejected by the Reserve Bank of India (RBI) Ombudsman undergo a second-level review by legally trained personnel, such as retired judicial officers or lawyers with at least ten years of experience.

The stay was granted by a division bench comprising Chief Justice DK Upadhyaya and Justice Tejas Karia, in response to an appeal filed by the RBI.

Background of the Case

On November 27, a single judge had issued a set of directions aimed at strengthening the RBI Ombudsman's customer complaint redressal mechanism.

The fifth direction, challenged by RBI, stated that a more effective and efficient complaint resolution system could significantly reduce litigation in courts and consumer forums.

RBI's Challenge

Solicitor General of India (SGI) Tushar Mehta, appearing for RBI, argued that the single judge had exceeded the powers conferred under Article 226 of the Constitution.

He noted that the scheme in question is a statutory framework framed under Section 35A of the Banking Regulation Act and Section 18 of the Payment and Settlement Systems Act, which can only be modified or altered by the authorities empowered under these laws.

Court's Interim Order

The division bench found prima facie merit in the RBI's submissions and ordered that the contested portion of the order-Section 47(5) of the single judge's ruling-remain stayed until the next hearing, which is scheduled for March 17.

Single Judge's Original Directives

In its detailed ruling, the single judge had directed RBI to ensure that complaints filed by customers are not summarily rejected through mechanised processes.

The order further emphasised that complainants should be given an opportunity to correct any mistakes in their submissions, promoting fairness and accuracy in the complaint redressal process.

(KNN Bureau)

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