RBI asks Ombudsmen to guide REs addressing recurring customer complaints

Mumbai, Jan 18, 2024 

"A well-functioning Internal Ombudsman mechanism is beneficial for all stakeholders" 

The Reserve Bank of India's Deputy Governor, Swaminathan J, has asked the regulated entities' internal Ombudsmen to proactively guide them in addressing recurring complaints of customers, the regulator said in a press statement on Tuesday.

“He called upon the Internal Ombudsmen to provide valuable inputs for enhancing internal systems and processes as well as to proactively guide the regulated entity in taking remedial measures to address recurring complaints,” the RBI said following a conference of Internal Ombudsmen of select Regulated Entities.

Swaminathan also outlined the RBI’s expectations from the Board/Top Management of the regulated entities by emphasising that a well-functioning Internal Ombudsman mechanism is beneficial for all stakeholders.

The Deputy Governor emphasised the role played by the Internal Ombudsmen as 'vigilant observers and facilitators in a fair and just dispute resolution process, for ensuring effective and impartial redress of customer grievances within the regulated entity itself.'

The conference was attended by Managing Directors & Chief Executive Officers, Executive Directors in charge of customer service verticals, Internal Ombudsmen, Principal Nodal Officers of select regulated entities from among Banks, Non-Banking Financial Companies (NBFCs), and Credit Information Companies (CICs), and senior officials from the RBI.

[The Business Standard]