RBI Issues Guidelines for Internal Ombudsman in Banks and NBFCs

The Reserve Bank of India (RBI) has issued guidelines mandating banks and eligible non-banking financial companies (NBFCs) to appoint internal ombudsmen (IO) to review customer complaints that are partially resolved or rejected. These entities must implement automated complaint management systems to escalate unresolved cases to the IO, who will have specified timelines for review. The IO will not handle complaints directly from the public but will act as an apex authority within institutions to strengthen grievance redressal mechanisms.