Mumbai: Reserve Bank Governor Sanjay Malhotra announced on Wednesday that in order to enhance consumer protection, the RBI has decided to equip Internal Ombudsman (IO) of banks with compensation powers and allow them access to the complainant, aligning the role of IOs more closely with that of the RBI Ombudsman.

The Reserve Bank has institutionalised the Internal Ombudsman (IO) mechanism in select Regulated Entities (REs) such as banks and NBFCs which enables an independent apex level review of complaints that are being rejected by the RE. The step to give more mower to the Internal Ombudsman will further improve upon the efficacy of this mechanism.

Additionally, a two-tiered structure may be introduced within REs for grievance redress prior to escalation to the IO. These measures aim t

See Full Page