RBI Strengthens Grievance Redressal with Internal Ombudsman Guidelines for Banks and NBFCs

The Reserve Bank of India (RBI) has issued new guidelines to strengthen the grievance redressal mechanism within regulated entities, including commercial banks, small finance banks, payments banks, NBFCs, prepaid payment issuers, and credit information companies. The rules mandate a senior-level internal ombudsman to review customer complaints before rejection or partial resolution, ensuring faster and more meaningful resolutions. The internal ombudsman will report to the board's customer service committee, with oversight from internal audit and board-level authorities. Certain financial entities remain outside the scope of these norms.