RBI invites comments on draft directions for Ombudsman Scheme by Oct 28
This story was originally published at 17:50 IST on 7 October 2025
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--RBI seeks comments on draft Internal Ombudsman for Regulated Entities norms
--RBI: Seek comments on draft internal ombudsman directions by Oct 28
--RBI invites comments on draft Ombudsman scheme by Oct 28
NEW DELHI – The Reserve Bank of India Tuesday released draft master directions for the Internal Ombudsman for regulated entities, as well as the draft norms for the Integrated Ombudsman Scheme, 2025. The central bank has sought public comments on both by Oct. 28.
According to the proposed directions for the Internal Ombudsman for regulated entities, a firm must have one internal ombudsman. The internal ombudsman should not be a current or past employee of the entity and must have at least seven years of experience in areas such as banking, and non-banking finance.
The RBI had in December 2023 institutionalised the internal ombudsman mechanism in various regulated entities like banks for independent review of customer complaints that are being rejected.
As per the draft guildelines for the Integrated Ombudsman Scheme, the RBI can appoint one or more of its officers as ombudsman for three years. This scheme was first launched in November 2021 and provides quick, cost-effective, and expeditious alternate grievance redressal mechanism.
The draft directions said there is no limit on the amount in a dispute that can be brought before the ombudsman. "However, for any consequential loss suffered by the Complainant, the Ombudsman shall have the power to provide a compensation up to 30 lakh (INR 3 million)," the draft norms said.
The ombudsman will also have the power to provide up to INR 300,000 for the loss of the complainant's time, expenses incurred, and for harassment suffered, if any, as per the proposed norms. End
Reported by Shubham Rana
Edited by Tanima Banerjee
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