Integrated Ombudsman Scheme

The Integrated Ombudsman Scheme is a unified grievance redressal framework introduced to provide simple, accessible, and efficient resolution of customer complaints relating to regulated financial services in India. By consolidating multiple sector-specific ombudsman schemes into a single mechanism, the scheme strengthens consumer protection, enhances regulatory efficiency, and reinforces trust in the Indian banking and financial system. Its importance extends beyond dispute resolution to supporting financial stability and inclusive economic growth.

Background and Evolution of the Integrated Ombudsman Scheme

Before the introduction of the Integrated Ombudsman Scheme, grievance redressal in India’s financial sector was governed by separate schemes for banks, non-banking financial companies, and digital transactions. This fragmented arrangement often caused confusion among customers regarding jurisdiction and appropriate forums for complaint filing.
To address these issues, the Integrated Ombudsman Scheme was introduced in 2021 by the Reserve Bank of India under powers derived from the Government of India. The scheme subsumed the Banking Ombudsman Scheme, the Ombudsman Scheme for Non-Banking Financial Companies, and the Ombudsman Scheme for Digital Transactions into a single, harmonised framework.

Objectives of the Integrated Ombudsman Scheme

The Integrated Ombudsman Scheme seeks to strengthen financial consumer protection and improve the effectiveness of grievance redressal. Its key objectives include:

• Simplifying the complaint filing and resolution process
• Eliminating jurisdictional ambiguity
• Promoting customer-centric regulation
• Enhancing accountability of regulated entities
• Strengthening public confidence in financial institutions

By integrating multiple schemes, the framework aligns India’s grievance redressal system with international best practices.

Scope and Coverage

The Integrated Ombudsman Scheme covers a wide range of financial service providers regulated by the Reserve Bank of India. These include:

• Commercial banks, regional rural banks, and cooperative banks
• Non-banking financial companies (NBFCs)
• Payment system operators and digital payment service providers

Complaints relating to deficiency in service, unfair practices, non-compliance with regulatory instructions, and failure to follow prescribed standards fall within the scope of the scheme.

Structure and Working Mechanism

The scheme adopts a “one nation, one ombudsman” approach. Customers can file complaints through a single online portal, email, postal submission, or a designated contact centre, regardless of the location of the complainant or the financial institution involved.
The grievance redressal process generally involves:

• Submission of complaint by the customer
• Preliminary scrutiny and facilitation by the ombudsman
• Conciliation or mediation between the parties
• Passing of an award or closure of the complaint

This streamlined structure reduces procedural delays and improves transparency and accessibility.

Relationship with Banking and Financial Systems

The Integrated Ombudsman Scheme is a critical component of India’s banking and financial architecture. With increasing digitisation, complex financial products, and widespread use of digital payments, an effective grievance redressal mechanism is essential to maintain consumer confidence.
By covering banks, NBFCs, and payment service providers under a single framework, the scheme supports integrated financial services while ensuring consistent regulatory oversight. It complements prudential regulation by focusing on service quality, customer rights, and fair practices.

Role in Financial Consumer Protection

Consumer protection lies at the core of the Integrated Ombudsman Scheme. It provides customers with a cost-free and accessible forum for grievance redressal, without the need for legal representation.
The scheme also enables the regulator to identify systemic issues, recurring service deficiencies, and patterns of misconduct. This information supports evidence-based regulatory intervention and policy improvement across the financial sector.

Advantages of the Integrated Ombudsman Scheme

The Integrated Ombudsman Scheme offers several benefits to consumers and the financial system:

• Unified and simplified grievance redressal mechanism
• Easy access through both digital and offline channels
• Faster and more transparent complaint resolution
• Reduced confusion regarding jurisdiction
• Improved accountability of financial institutions