ENA Sectors 2026-01-14 16:29:34 <p><span style="font-size:14px"><strong>New Delhi, Jan 14 (KNN) </strong>The Reserve Bank of India (RBI) has issued the Internal Ombudsman Directions, 2026, formalising rules for grievance redressal across regulated financial entities. The final directions follow a draft released on October 7, 2025, and incorporate stakeholder feedback.</span></p> <p><strong><span style="font-size:14px">Key Updates in the 2026 Directions</span></strong></p> <p><span style="font-size:14px">The 2026 Directions introduce several key updates aimed at strengthening grievance redressal across the financial sector. </span></p> <p><span style="font-size:14px">The definition of customer has been added, clarifying that even complaints not seeking specific relief can be reviewed to improve service delivery. </span></p> <p><span style="font-size:14px">For the appointment of Internal Ombudsmen (IOs), General Managers of Regional Rural Banks (RRBs) and cooperative banks are no longer treated as equivalent to public sector bank GMs, and IOs will not be appointed in these institutions due to low complaint volumes; temporary vacancies may be managed by serving officials or Deputy IOs.</span></p> <p><span style="font-size:14px">NBFCs are now explicitly allowed to award compensation under the RBI-Integrated Ombudsman Scheme without creating separate internal policies. </span></p> <p><span style="font-size:14px">Complaint-handling procedures have been refined: escalation timelines have been aligned with industry-specific standards such as NPCI and card networks, senior-level review has been clarified for complaints partially resolved or rejected at branch level, and IO powers for CICs have been reinstated to seek information and hold meetings with regulated entities. </span></p> <p><span style="font-size:14px">All decisions by IOs or Deputy IOs must be submitted to the RBI Ombudsman. Additionally, reporting requirements have been updated, with quarterly submissions now due by the 15th of the following month and reporting formats revised based on stakeholder feedback.</span></p> <p><strong><span style="font-size:14px">Scope and Objective</span></strong></p> <p><span style="font-size:14px">The Directions apply to commercial banks, small finance banks, payments banks, NBFCs, non-bank PPI issuers, and credit information companies (CICs). </span></p> <p><span style="font-size:14px">RBI said the rules aim to strengthen internal grievance redressal, ensuring timely resolution of customer complaints while promoting accountability, transparency, and trust across the financial sector.</span></p> <p><em><strong><span style="font-size:14px">(KNN Bureau)</span></strong></em></p> 44777 https://knnindia.co.in/news/newsdetails/sectors/rbi-finalises-internal-ombudsman-directions-2026-following-stakeholder-feedback 2026-01-14 16:29:34 knnindia.co.in