RBI Issues ‘Reserve Bank – Integrated Ombudsman Scheme (RB-IOS), 2026’

Current Context: The Reserve Bank of India (RBI) has introduced the Reserve Bank – Integrated Ombudsman Scheme (RB‑IOS), 2026 as a revised framework for handling customer grievances against RBI‑regulated entities.

Key Points

• Announcement & Effective Date – Issued on 16 Jan 2026, effective from 1 Jul 2026, replacing RB‑IOS 2021.
• Objective & Purpose – Provides a cost‑effective, expeditious, non‑adversarial grievance redress mechanism; adopts “One Nation, One Ombudsman”.
• Coverage & Scope – Applicable to banks, NBFCs, payment system operators, and co‑operative banks (with deposit thresholds); complaints can be filed if unresolved within 30 days.
• Key Improvements – Streamlined process, expanded coverage, stricter timelines, stronger Ombudsman powers, improved disclosure/reporting.
• No Monetary Limit – Removes earlier caps; no restriction on dispute amount eligible for consideration.
• Compensation Powers – Up to ₹30 lakh for consequential losses and ₹3 lakh for harassment, mental anguish, or time/expenses; includes appeal provisions.
• Complaint Filing Process – Via CMS portal (cms.rbi.org.in), email, physical submissions, or toll‑free helpline (14448).

Question:

Q.1 Under the revised scheme, what is the maximum compensation the Ombudsman can award specifically for "harassment, mental anguish, or for time and expenses incurred" by the complainant?
a) ₹10 lakh
b) ₹5 lakh
c) ₹3 lakh
d) ₹1 lakh

Answer: c) The scheme distinguishes between compensation for consequential losses (up to ₹30 lakh) and for harassment/mental anguish (up to ₹3 lakh).