RBI Mandates Internal Ombudsman for Banks, NBFCs to Boost Customer Grievance Redressal

• RBI makes Internal Ombudsman mandatory for all banks and NBFCs to strengthen customer complaint resolution.
• The new system aims to provide a robust grievance redressal framework, allowing independent review of unresolved or rejected complaints within the institution.
• Internal Ombudsmen must have at least seven years of experience in banking, NBFCs, regulation, or consumer protection, and hold a position equivalent to a General Manager level.
• The directive applies to commercial banks, small finance banks, payment banks, NBFCs, prepaid payment instrument companies, and credit information companies.
• Customer service and grievance redressal will now be under direct supervision of RBI's Department of Supervision, enhancing accountability and trust.

Why It Matters: RBI mandates Internal Ombudsmen in banks and NBFCs, ensuring robust, independent customer complaint resolution.