RBI has taken new steps to strengthen the customer complaint mechanism, RBI Governor gave information

With a view to strengthening the customer grievance redressal system, RBI Governor Shaktikanta Das on Friday said the central bank has decided to make certain changes and consolidate and harmonize the internal ombudsman guidelines into a single master direction. The Reserve Bank of India introduced an Internal Ombudsman (IO) in 2015 with the aim of strengthening the mechanism in select scheduled commercial banks.

Oct 6, 2023 - 17:48
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RBI has taken new steps to strengthen the customer complaint mechanism, RBI Governor gave information

With a view to strengthening the customer grievance redressal system, RBI Governor Shaktikanta Das on Friday said the central bank has decided to make certain changes and consolidate and harmonize the internal ombudsman guidelines into a single master direction.

Announcing the bi-monthly monetary policy, Das said this will further strengthen the customer grievance redressal system of regulated entities. Come, let us know about the complete news.

The Reserve Bank of India introduced an Internal Ombudsman (IO) in 2015 with the aim of strengthening the mechanism in select scheduled commercial banks. Regarding this, Shaktikanta Das said that based on the lessons learned from the implementation of the existing IO guidelines, it has been decided to harmonize it and issue a consolidated master direction.

The Master Direction will bring uniformity in matters such as timelines for escalating complaints to the IO, superseding, temporary absence of the Internal Ombudsman, minimum qualifications for appointment of the Internal Ombudsman, and introduction of the post of Deputy Internal Ombudsman besides updation of reporting formats.

He further said, that in view of the potential role of Self-Regulatory Organizations (SROs) in strengthening the compliance culture among their members and providing a consultative platform for policymaking, the Reserve Bank of India is considering recognizing SROs for various regulated entities. It has been decided to issue an omnibus framework for the bank.

He said the omnibus SRO framework will set out broad objectives, functions, eligibility criteria, governance standards, etc., which will be common to all SROs, irrespective of sector. In addition, the Reserve Bank may prescribe sector-specific additional conditions. He said that the time has come to invite applications for giving recognition to such SROs.

Muskan Kumawat Journalist & Writer
Electronics Special
Electronics Special