Banking Sector Reforms

Reserve Bank Integrated Ombudsman Scheme (RBIOS)


From UPSC perspective, the following things are important :

Prelims level: Banking Ombudsman Scheme

Mains level: Not Much

Issues related to ATM/debit cards and mobile/electronic banking were the top grounds of complaints received at the Office of Banking Ombudsman (OBO).

Why in news?

  • Of these, 3,04,496 complaints were handled by the 22 Offices of RBI Ombudsman (ORBIOs), including the complaints received under the three erstwhile Ombudsman Schemes till November 11, 2021.
  • Complaints related to ATM/ debit cards were the highest at 14.6% of the total, followed by mobile/ electronic banking at 13.6%.
  • About 90% of the total complaints were received through digital modes, including on the online Complaint Management System (CMS) portal.
  • Majority 66.1% of the maintainable complaints were resolved through mutual settlement/ conciliation/ mediation.

Banking Ombudsman Scheme

  • The Banking Ombudsman Scheme is an expeditious and inexpensive forum for bank customers for resolution of complaints relating to certain services rendered by banks.
  • It is introduced under Section 35 A of the Banking Regulation Act, 1949 by RBI with effect from 1995.
  • Presently the Banking Ombudsman Scheme 2006 (As amended upto July 1, 2017) is in operation.
  • All Scheduled Commercial Banks, Regional Rural Banks and Scheduled Primary Co-operative Banks are covered under the Scheme.
  • As per the present regulations, the ombudsman redressal is allowed for complaints where the compensation amount for any loss suffered by the complainant is limited to Rs 20 lakh.
  • Under the RBI-OS, 2021, following the ‘One Nation, One Ombudsman’ principle, the territorial jurisdictions have been abrogated, and complaints are assigned to all the ombudsmen by the CMS.

What about other sectors?

  • The Reserve Bank Integrated Ombudsman Scheme (RBIOS) amalgamates three ombudsman scheme of RBI – banking ombudsman scheme of 2006, ombudsman scheme for NBFCs of 2018 and ombudsman scheme of digital transactions of 2019.
  • The unified ombudsman scheme will provide redress of customer complaints involving deficiency in services if the grievance is not resolved to the satisfaction of the customers or not replied within a period of 30 days.
  • The new scheme also includes non-scheduled primary co-operative banks with a deposit size of Rs 50 crore and above.
  • The integrated scheme makes it a “One Nation One Ombudsman’ approach and jurisdiction neutral.


Crack Prelims 2023! Talk to our Rankers

(Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Notify of
Inline Feedbacks
View all comments


Join us across Social Media platforms.

💥Mentorship New Batch Launch
💥Mentorship New Batch Launch