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)

FULL FORMS OF KEY ABBREVIATIONS (For Exam Prep)

Abbreviation	Full Form
RBI	Reserve Bank of India
RB-IOS	Reserve Bank – Integrated Ombudsman Scheme
ORBIO	Office of RBI Ombudsman
CRPC	Centralised Receipt and Processing Centre
CC	Contact Centre
RE	Regulated Entity
NBFC	Non-Banking Financial Company
CIC	Credit Information Company
PSP / NBPSP	Payment System Participant / Non-Bank Payment System Participant
RRB	Regional Rural Bank
CMS	Complaint Management System
CEPC	Consumer Education and Protection Cell
AGR	Alternate Grievance Redress
MSME	Micro, Small and Medium Enterprise
KYC	Know Your Customer
CKYCR	Central KYC Records Registry
IVRS	Interactive Voice Response System
TAT	Turnaround Time
KFS	Key Facts Statement