For customers, the Ombudsman continues to be a free forum for resolving complaints when a regulated entity either fails to respond within the prescribed timeline or provides an unsatisfactory resolution. However, the latest framework introduces several important changes that could affect how complaints are handled.
Higher compensation for customers
One of the most significant changes under the 2026 scheme is the increase in the maximum compensation that an Ombudsman can award for financial loss arising from a deficiency in service. The limit has been raised from ₹20 lakh to ₹30 lakh, giving customers greater financial relief in cases where they suffer monetary loss because of lapses by a regulated entity.
The Ombudsman may also continue to award compensation for mental agony and harassment, subject to the limits and conditions specified in the scheme.
Wider coverage under a single framework
The revised scheme broadens the scope of entities covered under the RBI’s integrated grievance redress mechanism. In addition to banks and non-banking financial companies (NBFCs), it now explicitly covers payment system participants, prepaid payment instrument (PPI) issuers, credit information companies and other entities regulated by the RBI.
This means customers using digital payment services, wallets or credit bureau services can also approach the Ombudsman if their complaints remain unresolved after exhausting the entity’s internal grievance mechanism.
Complaint grounds updated for evolving financial services
The RBI has also updated the grounds on which customers can file complaints. While the scheme continues to address deficiencies in banking services, it has been aligned with the growing use of digital financial products and payment systems. The revised framework is intended to ensure that customer grievances relating to newer financial services can also be addressed through a common platform.
Greater responsibility on regulated entities
The 2026 scheme places emphasis on internal grievance redress mechanisms. Banks, NBFCs and other regulated entities are expected to resolve customer complaints efficiently before they reach the Ombudsman.
The framework also strengthens accountability by requiring regulated entities to comply with prescribed timelines, maintain robust complaint handling systems and improve oversight of customer grievances.
Faster and simpler complaint resolution
The RBI has retained the integrated approach introduced under the earlier scheme, where customers need not identify the jurisdictional Ombudsman before filing a complaint. Instead, complaints are received through a Centralised Receipt and Processing Centre (CRPC), which electronically allocates them for examination.
The centralised system is intended to make complaint handling faster, more consistent and easier for customers across the country.
Filing a complaint remains free
Customers can continue to file complaints without paying any fee. Complaints may be submitted online through the RBI’s Complaint Management System (CMS), by email or through other prescribed modes.
However, customers must first approach the concerned regulated entity. They can approach the Ombudsman only if the entity rejects the complaint, fails to respond within the prescribed period or if the customer remains dissatisfied with the response received.
Greater emphasis on transparency
The revised framework also focuses on improving transparency in grievance redress. Regulated entities are expected to strengthen reporting and monitoring of customer complaints, helping the RBI identify recurring issues and improve overall consumer protection across the financial sector.
Why the changes matter
The revised Ombudsman Scheme comes at a time when banking, lending and payments have become increasingly digital. As customers interact with banks, NBFCs, payment apps and credit information companies more frequently, the volume and complexity of complaints have also increased.
By expanding the scope of the scheme, enhancing compensation limits and strengthening the complaint resolution process, the RBI aims to provide consumers with a more effective and accessible mechanism for resolving disputes while encouraging regulated entities to improve their customer service standards.
