Customers who face an incorrect bank fee, an unauthorised debit or a transaction that was not reversed do not have to accept the loss without seeking redress. The first step is to submit a formal written complaint to the bank or financial institution involved.
If the response does not resolve the issue, or no response arrives within 30 days, the customer can escalate the complaint to the Reserve Bank of India through its complaint management system under the Integrated Ombudsman Scheme.
Issues covered by the RBI process
The RBI framework covers complaints involving banks, non-banking financial companies and payment system participants. It can be used for matters including:
- Incorrect or excessive bank charges
- Failed UPI and other digital payments
- Delayed or unpaid funds
- Charges not reversed after a failed transaction
- Unauthorised debits and fraudulent activity
- Shortcomings in loan or deposit services
The ombudsman framework also allows interim, non-binding advisories to be issued to a regulated entity. These advisories may require action aimed at achieving a full or partial resolution more quickly.
Documents and details needed
Once the bank’s response is unsatisfactory, or the thirty-day response period has ended, a complaint can be filed through the RBI’s online portal. The applicant selects the relevant category—bank, NBFC, system participant or CIC—and then identifies the specific entity.
The registered mobile number receives a one-time password and becomes the login handle for tracking the case. The form requires contact information, transaction details and the relief being sought. Applicants must also upload the earlier complaint, any response received, KYC documents and supporting proof.
After submission, the complainant receives an SMS and email containing a unique complaint reference number. That number should be retained for checking the status of the case.
Deadlines for escalation
A complaint should be taken to the RBI ombudsman within 90 days of receiving the bank’s response. Where the bank does not reply, the 90-day period begins after the 30-day window for the bank’s response has expired.
Complaints filed after the applicable deadline may be marked non-maintainable, according to the material cited in the report.
The RBI sends the complaint to the relevant bank or financial institution for its response. If that response is inadequate, or the entity does not respond, the ombudsman may take up the matter. The RBI also facilitates settlements between customers and banks in many cases.
Most complaints are resolved in around a month. When an ombudsman issues an award in the customer’s favour, the bank is required to comply after receiving the customer’s written acceptance within 30 days.
