Reserve Bank of India mandates Internal Ombudsman reviews for credit information companies to strengthen complaint redress

The Reserve Bank of India issued new Directions requiring all Credit Information Companies (CICs) to put an Internal Ombudsman (IO) mechanism at the apex of their internal grievance redress process, so that complaints that are partly resolved or rejected are independently reviewed before the customer receives a final decision. Each CIC must appoint at least one IO meeting prescribed eligibility and independence criteria, with an optional Deputy Internal Ombudsman (Dy. IO), on fixed tenures of at least three years and up to five years. CICs must implement a fully automated complaints management system that auto-escalates partially resolved or wholly rejected complaints to the IO within 25 days of receipt, and ensures the final outcome is communicated to the complainant within 30 days. The framework sets governance and oversight expectations including functional reporting to the Consumer Protection Committee of the Board, limits on overruling IO decisions (only with Managing Director or Chief Executive Officer approval and subsequent committee review), quarterly complaint analysis by the IO to support root-cause remediation, annual internal audit coverage of implementation, and reporting to the Reserve Bank on appointments and quarterly functioning. The Directions are effective immediately, with specified provisions to be complied with by 30 June 2026, and they repeal the Master Direction on Internal Ombudsman for Regulated Entities issued in 2023 while deeming prior appointments and actions to have been made under the new framework.