RBI has introduced a new resolution mechanism for consumer complaints regarding services provided by entities supervised by the Reserve Bank of India in an expedient and cost-effective manner. The Reserve Bank Integrated Ombudsman Scheme is a system in which individuals can resolve their quarrels with banks through independent third parties that are approved by the central bank.
The Ombudsman is authorized to review consumer complaints against Regulated Entities regarding service inadequacies. There is no restriction on the amount of money involved in a dispute that can be appealed to the Ombudsman.
According to the Act, however, in addition to up to Rs 1 lakh for loss of time, money, and mental distress caused to the complainant, the Ombudsman has the authority to compensate up to Rupees 20 lakh for any additional losses incurred.
