RBI INTEGRATED BANKING OMBUDSMAN

SCHEME, 2021
 WHO IS BANKING OMBUDSMAN
Banking Ombudsman is a senior official
appointed by the RBI as an appellate body
where customers can escalate complaints if the
financial institution fails to address the
complaint within 30 days.
The RBI may appoint one or more of its officers
as Ombudsman and Deputy Ombudsman, to
carry out the functions entrusted to them for a
period not exceeding three years at a time.
 OBJECT OF 2021 SCHEME

One Nation, One Ombudsman System by enabling the

customers of Regulated Entities (REs) like banks, Non-
Banking Financial Companies (NBFCs), Payment
System Participants (PSPs) and Credit Information
Companies to register their complaints at one
centralized reference point.
Resolve customer grievances in relation to ‘deficiency
of services’ on part of entities regulated by Reserve
Bank of India in an expeditious and cost-effective
manner.
 SCOPE OF THE 2021 SCHEME
• The scheme applies to all the financial services
provided by regulated entity in India.
• Regulated entity includes a Bank, Non-banking
Financial Company (NBFC), and a System Payment
• NBFC do not include- Core Investment Company
(CIC), an Infrastructure Debt Fund NBFC (IDF-
NBFC), a NBFC- Infrastructure Finance Company
(NBFC-IFC), a company in resolution or winding
up/liquidation.
 ROLE OF REGULATED ENTITY IN WORKING
OF THE SCHEME
It ensures smooth conduct of the scheme by adhering
to the requirements under the scheme.
It should display at all its branches and business places-
1. the salient features of the scheme should be
displayed in Hindi, English and regional language at
all its branches and business places.
2. the name and contact details (Telephone/mobile
number and E-mail ID) of the Principal Nodal Officer
along with the details of the complaint lodging
portal of the Ombudsman (https://cms.rbi.org.in).
 HOW TO REGISTER COMPLAINT WITH
BANKING OMBUDSMAN
There are 3 modes of filing the complaint-
1. through the online portal at https://cms.rbi.org.in.
2. through the dedicated e-mail on CRPC@rbi.org.in
3. physical mode to the “Centralized Receipt and Processing Centre” set up at
Reserve Bank of India in Chandigarh.
The complaint must however fulfill following essentials-
4. Made in writing
5. if the financial institution fails to address the complaint within 30 days; or
when customers are not satisfied with the resolution offered within 1 year
6. The cause of action is not already pending before ombudsman or before
any court, tribunal or other adjudicating authority
7. It is not abusive or frivolous or vexatious in nature
8. It is within the limitation period
9. complaint is lodged by the complainant personally or through an
authorized representative
 FEATURES
• The Scheme integrates the existing three Ombudsman Schemes of RBI,
1. The Banking Ombudsman Scheme, 2006;
2. The Ombudsman Scheme for NonBanking Financial Companies, 2018, and
3. The Ombudsman Scheme for Digital Transactions, 2019,
realizing “One Nation One Ombudsman” seeks to resolve customer grievances in relation to
services provided by entities regulated by Reserve Bank of India in an expeditious and cost-
effective way.
• The Scheme will have one portal, one email and one address for the
customers to lodge their complaints;
• It has done away with the jurisdiction of each ombudsman office;
• The Scheme defines “deficiency in service” as the ground for filing a
complaint, with a specified list of exclusions. Therefore, the complaints
would no longer be rejected simply on account of “not covered under the
grounds listed in the scheme”;
• It will no longer be necessary for a complainant to identify under which
scheme he/she should file complaint with the Ombudsman;
• The responsibility of representing the Regulated Entity and furnishing
information in respect of complaints filed by customers against the
Regulated Entity would be that of the Principal Nodal Officer in the rank
of a General Manager in a Public Sector Bank or equivalent; and
• The Regulated Entity will not have the right to appeal in cases where an
Award is issued by the ombudsman against it for not furnishing
satisfactory and timely information/documents.
• A Centralised Receipt and Processing Centre (CRPC) has been set up at
RBI, Chandigarh for receipt and initial processing of physical and email
complaints in any language
• The Executive Director-in charge of Consumer Education and Protection
Department of RBI would be the Appellate Authority under the Scheme.
 DATA ANALYSES AND EFFICACY
• RBI’s Annual Report on Ombudsman schemes for 2021-22, provides data
regarding the trends in the complaints.
• The RBI-IOS was introduced in November 2021, and it received 72.58
thousand complaints during the remaining period of 2021-22.
• Along with RBI-IOS, Centralized Receipt and Processing Center (CRPC) was
established for preliminary scrutiny and processing of all physical and email
complaints. Main purpose of implementing CRPC is to screen and reduce
the number of complaints forwarded to Ombudsman.
• 1.13 lakh complaints were handled and disposed by CRPC in 2021-22, the
impact of which can be seen in the fall in actual number of complaints
handled by Ombudsman offices during 2021-22.
• The number of complaints received in 2021-22 is 9% more than in 2020-21
• Complaints relating to digital modes of payment and transactions were the
highest, constituting 42.12% during the year.
• The rate of disposal of complaints improved to 97.97% in 2021-22 from
96.59% in 2020-21.
Source: RBI's Annual Report on Ombudsman Scheme
• Data from the RBI’s annual report on the ‘Ombudsman Schemes’ indicates
that the overall disposal rate increased to 98% in 2021-22.
• The lower tenure of the pending complaints indicates a faster disposal of
the complaints by the ombudsman.
• Meanwhile, there is an increase in the cost incurred per complaint. In
2021-22, it is Rs. 2,895 per the complaint, while it was Rs.1,599 in 2020-21.
The Annual report states that it is due to the additional hiring for the
implementation of the new integrated scheme.
• However, it cannot be conclusively ascertained if this is the impact of the
new ombudsman scheme. Trends from the coming years would provide an
indication of the impact of the integrated ombudsman scheme.
• It also needs to be seen if RB-IOS helps reduce the overall cost in the
future.
 THANK YOU

AAINA MITTAL (1901001)

IDHIKA (1901044)