Archive · 17 Jan 2026
RBI Finalizes Higher Compensation Caps in Ombudsman Scheme
The Reserve Bank of India (RBI) has decided to keep higher compensation limits in its new Ombudsman Scheme, which will start on July 1, 2026.
This scheme helps people who have problems with banks or similar companies.
The Ombudsman can give up to ₹30 lakh for big losses and up to ₹3 lakh for smaller issues like time wasted or harassment.
The RBI said these limits are fair for both customers and companies.
People can complain online or by email, and the RBI will process these complaints quickly.
The Ombudsman can be appointed for three years.
The goal is to make it easier and faster to solve problems without going to court.
RBI retains higher compensation limits of up to ₹30 lakh for consequential losses and ₹3 lakh for time/expenses/harassment in the new Ombudsman Scheme.
The scheme will be applicable to all banks, NBFCs, PPI issuers, and credit information companies from July 1, 2026.
RBI rejected industry requests to lower or recalibrate the compensation caps, citing a balance between consumer relief and entity interests.
The Ombudsman can facilitate settlements or pass awards for disputes of any amount, with compensation limits applying only to specific losses.
Complaints can be filed online or through email, with a centralized processing center for quick resolution.
- Who
- Reserve Bank of India (RBI)
- What
- Finalized the Reserve Bank – Integrated Ombudsman Scheme, 2026 with higher compensation caps
- When
- Effective from July 1, 2026
- Where
- India
- Why
- To strengthen the ombudsman framework and improve complaint resolution efficiency
- Compensation for consequential losses
- Up to ₹30 lakh
- Compensation for time/expenses/harassment
- Up to ₹3 lakh
- Scheme applicability
- All banks, NBFCs, PPI issuers, and credit info companies
- Effective date
- July 1, 2026
- Ombudsman appointment term
- Three years
- Complaint registration portal
- https://cms.rbi.org.in
