Internal Ombudsmen must deliver fair and timely grievance redressal: RBI Deputy Governor

Reserve Bank of India (RBI) Deputy Governor Swaminathan J has called on internal ombudsmen (IOs) of banks and other regulated entities to ensure that customer complaints are resolved in a fair, timely and effective manner. Addressing the Third Annual Conference of Internal Ombudsmen in Mumbai, he stressed that the role of IOs goes beyond regulatory compliance and is crucial in building customer trust and confidence in the financial system.

The Deputy Governor said internal ombudsmen should act independently and objectively while reviewing complaints that customers believe have not been handled satisfactorily by financial institutions. He emphasised that grievance redressal mechanisms should focus on transparency, accountability and prompt resolution, ensuring that customers receive meaningful outcomes rather than procedural responses. He also encouraged regulated entities to strengthen their internal systems and improve the overall quality of customer service.

Swaminathan noted that an effective grievance redressal framework is essential for maintaining public confidence in the banking sector. He urged banks to empower internal ombudsmen with the necessary authority and resources so they can function independently and uphold the highest standards of fairness while resolving customer disputes. The RBI has consistently highlighted consumer protection as a key pillar of a robust financial system.