Current Context: The Reserve Bank of India (RBI) has extended the Integrated Ombudsman Scheme (RB-IOS, 2021) to include Central and State Co-operative Banks for faster redress of customer grievances.

ABOUT RB-IOS 2021

• Objective: Provide a cost-free, quick, and fair grievance redress system for customers of regulated entities.
• Coverage Includes:
  • All Commercial Banks, Regional Rural Banks, Primary Urban Co-operative Banks, and NBFCs(with ₹100 crore assets).
  • System Participants under the Payment and Settlement Systems Act, 2007.
  • Credit Information Companies.
• Integration: Unified three previous Ombudsman schemes (Banking, NBFC, and Digital Transactions).
• Approach: “One Nation, One Ombudsman”.
• Power: Can award compensation up to ₹20 lakh plus ₹1 lakh for time and distress.