RBI plans to empower ombudsman to award up to ₹30 lakh compensation to aggrieved bank customers

Kolkata, Oct 7, 2025

Synopsis
The Reserve Bank of India is enhancing the banking ombudsman scheme. Customers may receive up to Rs 30 lakh for losses. An additional Rs 3 lakh can be awarded for harassment and time spent on grievances. Co-operative bank customers can now approach the ombudsman from November 1.

The Reserve Bank of India has proposed that the banking ombudsman may pay a compensation up to Rs 30 lakh to aggrieved bank customers for any consequential loss they suffer.

This is part of the central bank's effort to strengthen the ombudsman scheme and raise customer satisfaction.

In addition, the ombudsman shall also have the power to provide up to Rs 3 lakh for harassment suffered and time spent for taking up their grievances, if any, by the complainant.

Separately, RBI said that customers of state co-operative banks and central co-operative banks can raise their grievances with banking ombudsman structure from November 1

Customers can escalate the complaint with RBI if they don't get a response to the complaint with banks for 30 days after filing it.

[The Economic Times]