Integrated Ombudsman Scheme (RB-IOS), 2021

The Integrated Ombudsman Scheme (RB-IOS), 2021 is a comprehensive and unified grievance redressal mechanism introduced to provide simple, accessible, and efficient resolution of customer complaints relating to regulated financial services in India. Implemented by the Reserve Bank of India, the scheme integrates multiple earlier ombudsman frameworks into a single system. It plays a crucial role in strengthening consumer protection, enhancing regulatory efficiency, and reinforcing confidence in India’s banking and financial system, thereby contributing to the stability of the Indian economy.

Background and Rationale of RB-IOS, 2021

Before the introduction of RB-IOS, 2021, grievance redressal in the financial sector was governed by separate schemes, including the Banking Ombudsman Scheme, the Ombudsman Scheme for Non-Banking Financial Companies, and the Ombudsman Scheme for Digital Transactions. This fragmented structure often created confusion for customers regarding jurisdiction, procedures, and eligibility for complaint resolution.
To overcome these limitations, the Integrated Ombudsman Scheme (RB-IOS), 2021 was introduced by the Reserve Bank of India under powers derived from the Government of India. The scheme is based on the principle of “one nation, one ombudsman”, ensuring uniformity, simplicity, and ease of access for financial consumers across the country.

Objectives of the Integrated Ombudsman Scheme

The objectives of RB-IOS, 2021 are closely aligned with broader financial sector reforms and consumer-centric regulation. The key objectives include:

• Simplification of the financial grievance redressal process
• Elimination of jurisdictional and procedural complexities
• Strengthening accountability of regulated financial entities
• Enhancing customer confidence in banking and financial services
• Promoting fairness, transparency, and efficiency in service delivery

These objectives collectively reinforce the integrity and credibility of India’s financial system.

Scope and Coverage of RB-IOS, 2021

The Integrated Ombudsman Scheme covers a wide range of entities 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, non-compliance with regulatory instructions, unfair practices, and failure to adhere to prescribed standards fall within the scope of the scheme. As a precondition, customers must first approach the internal grievance redressal mechanism of the concerned institution.

Structure and Working Mechanism

RB-IOS, 2021 provides multiple channels for lodging complaints, including an online portal, email, postal submission, and a dedicated contact centre. Under the “one nation, one ombudsman” approach, complaints are handled independently of the geographical location of the complainant or the financial institution involved.
The grievance redressal process generally involves:

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

This standardised and streamlined process improves transparency and reduces delays in dispute resolution.

RB-IOS, 2021 and the Banking System

The Integrated Ombudsman Scheme is particularly significant for the banking sector, which forms the backbone of India’s financial system. With rapid digitisation, increasing use of digital payment systems, and growing complexity of banking products, customer grievances have become more frequent and multifaceted.
RB-IOS, 2021 ensures that banks remain accountable for service quality and regulatory compliance. By offering a uniform and accessible redressal mechanism, the scheme strengthens customer trust in banks and supports the smooth functioning of the banking system.

Role in Financial Consumer Protection

Consumer protection is the central pillar of RB-IOS, 2021. The scheme empowers customers by providing a cost-free, transparent, and user-friendly forum for grievance redressal, without requiring legal representation.
It also enables the Reserve Bank of India to identify systemic issues, recurring deficiencies, and emerging risks within the financial sector. This feedback mechanism supports evidence-based regulation and continuous improvement in financial governance.

Advantages of the Integrated Ombudsman Scheme, 2021

RB-IOS, 2021 offers several advantages within the Indian banking and financial framework:

• Unified grievance redressal across banking, NBFCs, and digital payments
• Simplified procedures and removal of jurisdictional ambiguity
• Faster and more transparent complaint resolution
• Improved accountability of regulated financial institutions
• Enhanced consumer confidence in formal financial systems