Integrated Ombudsman Scheme (RB-IOS)

• 20 Mar 2024

Recently, the RBI’s IOS Scheme witnessed an upsurge in complaints, highlighting increased public engagement and areas of concern within financial sectors.

Key Points

• The RB-IOS 2021 merges the Banking Ombudsman Scheme, 2006; the Ombudsman Scheme for Non-Banking Financial Companies, 2018; and the Ombudsman Scheme for Digital Transactions, 2019, operating under "One Nation One Ombudsman" to offer a single platform for financial service complaints.
• Initially established by the RBI in 1995 under Section 35A of the Banking Regulation Act, 1949, RB-IOS aimed to provide a cost-effective and efficient means to resolve banking service complaints, ensuring customer satisfaction.
• The 2021 Scheme incorporates provisions from the Banking Regulation Act, 1949; the Reserve Bank of India Act, 1934; and the Payment and Settlement Systems Act, 2007, offering a cost-free resolution process that mandates timely redressal within 30 days.
• It expands coverage to include Non-Scheduled Primary Cooperative Banks with deposits of Rs 50 crore and above, broadening consumer protection and promoting transparency in a wider range of financial services.