RBI Lifts Dispute Amount Cap In Ombudsman Cases, Sets Rs 30 Lakh Compensation Ceiling

(MENAFN- KNN India) New Delhi, Jan 19 (KNN) The Reserve Bank of India (RBI) has removed the limit on the value of disputes that a complainant can bring before an RBI Ombudsman under the Reserve Bank–Integrated Ombudsman Scheme (RB-IOS), 2026.

Under the revised framework, the Ombudsman or Deputy Ombudsman may facilitate a settlement or pass an award irrespective of the amount involved in the dispute.

Compensation Limits Specified

While there is no ceiling on the dispute amount, the Ombudsman may award compensation of up to Rs 30 lakh for consequential losses suffered by a complainant. In addition, compensation of up to Rs 3 lakh may be granted for loss of time, expenses incurred, harassment or mental anguish, if any.

Wider Coverage and Implementation Timeline

The revised scheme will apply to banks, non-banking financial companies, non-bank prepaid payment instrument issuers and credit information companies. It will come into effect from July 1, 2026.

According to the RBI, the changes are aimed at strengthening the Ombudsman framework and improving the efficiency of complaint resolution.

Focus on Faster and Non-Adversarial Redress

The central bank said the scheme seeks to provide a cost-effective, expeditious and non-adversarial alternative grievance redress mechanism for complaints against regulated entities covered under the framework.

Appointments and Operational Structure

The RBI may appoint one or more of its officers as RBI Ombudsman and Deputy Ombudsman to carry out functions under the scheme. Such appointments will generally be for a period of three years.

To speed up complaint disposal, the Ombudsman may hold sittings at locations and in a manner considered necessary.

Centralised Complaint Handling

The RBI will establish a Centralised Receipt and Processing Centre at one or more locations to receive and process complaints under the scheme.

Online complaints will be registered through the RBI's Complaint Management System portal, while complaints received by email or in physical form will be routed to the centralised centre for processing.

(KNN Bureau)

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