The RBI made this decision in accordance with Section 35A of the Banking Regulation Act, 1949.
About Reserve Bank - Integrated Ombudsman Scheme, 2021 (RB-IOS, 2021)
- Objective: Provide customers of regulated entities (REs) a speedy, cost-effective and expeditious alternate grievance redress mechanism.
- Coverage: Until now it covered-
- All Commercial Banks, Regional Rural Banks, Scheduled Primary (Urban) Co-operative Banks, and Non-Scheduled Primary (Urban) Co-operative Banks with deposits size of ₹50 crore.
- All Non-Banking Financial Companies (excluding Housing Finance Companies) which are authorised to accept deposits or have customer interface, with an assets size of ₹100 crore
- All System Participants (includes System Provider which participate in a payment system in accordance with the Payment and Settlement Systems Act, 2007)
- Credit Information Companies
- It integrated the three Ombudsman schemes of RBI, namely,
- the Banking Ombudsman Scheme, 2006;
- the Ombudsman Scheme for Non-Banking Financial Companies, 2018; and
- the Ombudsman Scheme for Digital Transactions, 2019.
- It adopted the ‘One Nation One Ombudsman’ approach by making the RBI Ombudsman mechanism jurisdiction neutral.
- Power: The Ombudsman can award up to ₹20 lakh in compensation, plus up to ₹1 lakh for the complainant’s time, expenses, and any mental distress or harassment.
