Reserve Bank – Integrated Ombudsman Scheme (RB-IOS) 2024-25

The Reserve Bank of India (RBI) released its Annual Report for the Reserve Bank – Integrated Ombudsman Scheme (RB-IOS), 2021, highlighting major developments in India’s grievance redress ecosystem during April 1, 2024 to March 31, 2025.

The scheme provides a cost-free Alternate Grievance Redress (AGR) mechanism for customers whose complaints were not resolved satisfactorily by Regulated Entities (REs) — such as banks, Non-Banking Financial Companies (NBFCs), Payment System Participants (PSPs), and Credit Information Companies (CICs).

Key Coverage and Institutional Setup

The scheme is administered through:

• 24 Offices of the RBI Ombudsman (ORBIOs)

• A Centralised Receipt and Processing Centre (CRPC) in Chandigarh

• A nation-wide Contact Centre (CC) helpline — 14448

The entities covered include:

• Scheduled Commercial Banks

• Regional Rural Banks (RRBs)

• Urban Co-operative Banks (UCBs) with minimum deposit size criteria

• NBFCs with customer interface or deposit-taking status

• PSPs, including digital wallet providers

• CICs

Complaint Trends: Rising Awareness and Digital Access

Total Complaints Received

Complaints under RB-IOS reached 13.34 lakh in 2024-25, rising 13.55% from 11.75 lakh in 2023-24.

Where they were handled

• 9.11 lakh complaints at CRPC

• 2.96 lakh complaints at Ombudsman offices

However, complaints per lakh bank accounts reduced from 8.9 to 7.7, indicating improved customer handling at RE level.

Preferred Complaint Channel

Digital filing grew — 91.22% complaints were lodged via online portal or email.

Who Filed Complaints?

• Individuals formed 87.19% of complainants.

• Most complaints were from metropolitan areas, followed by urban and semi-urban regions.

Against Whom Were Complaints Filed?

• Banks attracted 81.53% of complaints, followed by NBFCs (14.80%).

• Private sector banks overtook public sector banks for highest complaint share.

• Small finance banks saw steep rise (about 42%) compared to previous year.

What Were They Complaining About?

Five categories made up over 86% of total issues:

1. Loans and advances — highest at 29.25%

2. Credit cards — sharp increase of around 20%, becoming 2nd largest category

3. Mobile/electronic banking

4. Deposit accounts

5. ATM/Debit card grievances

Digital banking complaints declined by 12.74%, reflecting improved system controls.

Resolution of Complaints

• 2.90 lakh complaints were disposed at Ombudsman offices

• 93.07% disposal rate

Among disposed cases:

• 62.16% were maintainable complaints

• 51.91% of these maintainable complaints were resolved by settlement/conciliation/mediation

• 43.36% were rejected after examination

• Only 36 cases required formal awards

• 4.71% were withdrawn by complainants

Non-Maintainable Complaints

Over 1.09 lakh complaints were closed as non-maintainable.
Top reasons included:

• First Resort Complaints (customers had not approached the bank first)

• Duplicate complaints

• Complaints lacking information

• Complaints already dealt with earlier

• Matters outside RBI jurisdiction

Appeals

The system allows appeals to RBI’s Appellate Authority (Executive Director in charge).

• 104 appeals filed in 2024-25

• Majority filed by complainants rather than regulated entities

Operational Improvements

Cost Efficiency

The average cost of resolving a complaint fell from ₹1,732 to ₹1,582, reflecting efficiency gains.

Contact Centre Growth

The consumer helpline:

• Received 9.27 lakh calls, up 29% year-on-year

• Available in Hindi, English and 10 regional languages

• Expanded staffing and hours to improve access

Major Consumer Protection Initiatives by RBI

To strengthen customer awareness and safety, RBI:

• Issued circulars against voice/SMS-based frauds and digital arrest scams

• Launched media campaigns on fraud prevention and grievance rights

• Enhanced Key Fact Statement (KFS) norms for loans

• Set 14-day turnaround time for MSME loan sanctions

• Simplified Know Your Customer (KYC) via central KYC registry

• Increased collateral-free agriculture loan limit to ₹2 lakh

• Conducted surveys in rural areas to understand under-reporting of complaints

• Penalised and monitored banks showing weak grievance systems

Way Forward (2025–26)

The RBI Consumer Education and Protection Department plans to:

• Review Ombudsman Scheme guidelines

• Improve rules on internal grievance redress at banks/NBFCs

• Issue fresh Master Directions on complaint handling

• Upgrade the Complaint Management System (CMS)

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