The Reserve Bank of India (RBI) on January 14, 2026, issued the Reserve Bank of India (Payments Banks - Internal Ombudsman) Directions, 2026.
These Directions are issued with a view to strengthen the Internal Grievance Redress mechanism within a bank and ensure a speedy and meaningful resolution of customer complaints by enabling a review before their rejection, by an apex level authority within the bank.
These Directions shall be applicable to Payments Banks (hereinafter collectively referred to as 'banks' and individually as a 'bank') having 10 or more banking outlets in India as on March 31, 2025.
The directions shall also be applicable to the Payments Banks, which meets the above mentioned criteria after March 31, 2025, with effect from six months from meeting the eligibility criteria.
The key provisions are as stated:
• The IO shall either be a retired or serving officer, in the rank equivalent to a General Manager in the RE under the purview of the Internal Ombudsman framework or a Financial Sector Regulatory Body, having necessary skills and experience of minimum seven years of working in areas such as banking, non-banking finance, regulation, supervision, payment and settlement systems, credit information or consumer protection.
• The Dy. IO shall either be a retired or serving officer, in the rank equivalent to a Deputy General Manager in the RE under the purview of the Internal Ombudsman framework or a Financial Sector Regulatory Body, having necessary skills and experience of minimum five years of working in areas such as banking, non-banking finance, regulation, supervision, payment and settlement systems, credit information or consumer protection.
• Every bank shall appoint at least one IO.
• The Customer Service Committee of the Board of the bank shall determine, at least once in a year, the number of IO/ Dy. IO to be appointed having due regard to volume and complexity of the complaints received, and ensuring that the IO/ Dy. IO get sufficient time to apply his/her mind on the principles of fairness, equity and natural justice while reviewing the resolution provided by the bank.
• The appointment of the IO / Dy. IO in the bank shall be contractual.
• The bank shall ensure that the post of the IO does not remain vacant at any point of time. During the temporary absence of the IO, the Dy. IO may function as the IO.
The detailed notification is attached to the document below.
[Notification No. RBI/CEPD/2025-26/383 CEPD.PRD.No.S1028/13.01.019/2025-26]
