Why in news?
The Reserve Bank of India’s Integrated Ombudsman Scheme (RB‑IOS) received over 13.34 lakh complaints in the financial year 2024‑25, according to the central bank’s latest report released in December 2025. This represents a rise of about 13.5 % over the previous year and underscores growing public reliance on grievance redressal mechanisms.
Background
Launched in 2021, the RB‑IOS merged three separate ombudsman schemes for banks, non‑banking financial companies (NBFCs) and digital transactions into a single platform. Customers can file complaints online, through email or by calling a toll‑free number. The scheme covers commercial banks, scheduled co‑operative banks and designated NBFCs, including fintech companies.
Under the scheme, complaints are first handled by the concerned financial entity. If the customer is unsatisfied or does not receive a response within 30 days, they can appeal to the RBI Ombudsman. The ombudsman’s orders are binding on the entity, though customers retain the option to approach courts.
Highlights of the FY 2024‑25 report
- Volume of complaints: A total of 13.34 lakh complaints were received, a 13.55 % increase over FY 2023‑24. More than 9 lakh calls were handled by the scheme’s contact centre (dial 14448) for guidance.
- Dominant sectors: Banks accounted for 81.5 % of complaints, followed by NBFCs (14.8 %). Within banks, private sector banks saw a rise in complaints to 37.5 %, while public sector banks saw a relative decline.
- Major complaint categories: Issues related to loans and advances formed 29 % of complaints, credit card problems 17 %, and mobile/electronic banking 16 %. Other grievances included account operations, remittances and fraud.
- Geographic distribution: The highest number of complaints came from metropolitan areas, reflecting higher financial activity and awareness. Rural complaints remained relatively lower but are increasing with digital penetration.
Way forward
The RBI plans to enhance awareness about the RB‑IOS and expand its reach to rural and semi‑urban areas. Financial institutions are being encouraged to strengthen internal grievance redressal and reduce turnaround times. The data also indicates the need for improved transparency in loan processing and digital banking services. As consumer finance grows more complex, an efficient ombudsman remains critical for protecting customers.
Source: BS
