New Delhi | In a major step aimed at strengthening consumer protection in the financial sector, the Reserve Bank of India has notified the Revised Integrated Ombudsman Scheme (RIOS) 2026, which will come into force from July 1, 2026. The central bank said the revised framework is designed to ensure quicker, simpler and more cost-effective resolution of customer complaints against banks and other regulated entities.
Under the new scheme, complaint-handling proceedings will follow a summary process, with reduced procedural complexity. Formal rules of evidence will not be mandatory, a move expected to ease the burden on complainants and help address cases that otherwise remain pending due to technicalities.
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Unified platform for quicker redress
According to the RBI, the revised scheme aims to bring complaints against various regulated entities—including banks, non-banking financial companies (NBFCs) and other financial service providers—under a single, integrated framework. This unified structure is intended to eliminate fragmentation and reduce delays in grievance redress.
As part of the overhaul, the RBI will establish one or more centralised receipt and processing centres to handle complaints filed under the scheme. These centres will receive complaints, carry out preliminary scrutiny, and facilitate their processing in a time-bound manner.
Customers will be able to lodge complaints through online channels, significantly reducing dependence on physical documentation or in-person submissions. The central bank said this digital-first approach would save both time and cost for consumers, while improving efficiency in complaint handling.
Appointment of Ombudsman and Deputy Ombudsman
Under the Revised Integrated Ombudsman Scheme, the RBI will appoint one or more of its officers as RBI Ombudsman and Deputy Ombudsman. These appointments will generally be for a three-year term.
The appointed officials will be responsible for discharging all functions assigned under the scheme, including examination of complaints, facilitation of settlements, and issuance of decisions where required. While handling cases, the ombudsman will be guided by banking laws, established banking practices, and directions issued by the RBI from time to time.
The central bank said this structure is intended to ensure consistency, fairness and transparency in decision-making across cases.
No limit on dispute value
One of the most significant changes under the revised framework is the removal of any ceiling on the value of disputes that can be taken up by the ombudsman. Complaints involving any amount can be considered under the scheme.
However, the RBI has specified limits on compensation. The ombudsman may award compensation of up to ₹30 lakh for actual loss suffered by the complainant as a direct consequence of the act or omission of the regulated entity.
In addition, the ombudsman will have the discretion to grant up to ₹3 lakh as compensation for loss of time, mental anguish or harassment suffered by the complainant.
What changes for customers
With the new scheme in place, customers will no longer need to navigate multiple forums or procedures to seek redress. A single, integrated mechanism is expected to make the complaint process more transparent and accessible.
Experts believe that the simplified and summary nature of proceedings will be particularly beneficial for small and medium-value grievances, which often get delayed due to procedural hurdles. Faster resolution is also expected to enhance customer confidence in the formal financial system.
Transition and implementation
The RBI said detailed operational guidelines will be issued to all regulated entities ahead of the July 1 rollout to ensure a smooth transition. Banks and other institutions will be required to align their internal grievance redress mechanisms with the revised scheme.
Analysts noted that the Revised Integrated Ombudsman Scheme 2026 has the potential to significantly strengthen India’s financial consumer protection framework. However, they cautioned that its success will depend on effective implementation, adequate staffing, and robust digital infrastructure to handle large volumes of complaints efficiently.
As financial products and services grow more complex, the revised scheme is expected to play a key role in ensuring accountability and timely justice for consumers.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
