The Reserve Bank of India has withdrawn its January 27, 2021 instructions on strengthening banks’ grievance redress mechanisms for all scheduled commercial banks excluding regional rural banks, citing a review of the framework following subsequent regulatory and supervisory developments and a need to rationalise requirements. Complaint-related disclosures have been consolidated into the Master Direction on Financial Statements: Presentation and Disclosures (Directions) dated November 28, 2025, while customer compensation expectations have been strengthened through enhanced compensation limits under the Reserve Bank–Integrated Ombudsman Scheme, 2026 and powers for Internal Ombudsmen to recommend compensation under the Reserve Bank of India (Internal Ombudsman) Directions, 2026. The Reserve Bank also noted that banks’ grievance redress mechanisms are subject to supervisory assessment through regular processes, and clarified that the withdrawal does not dilute banks’ ongoing obligations under extant regulatory and supervisory instructions and their Board-approved policies. The 2021 circular is withdrawn and treated as repealed with immediate effect.
Reserve Bank of India 2026-02-11
Reserve Bank of India withdraws 2021 grievance redress mechanism circular for scheduled commercial banks to avoid duplication with updated disclosures and ombudsman rules
The Reserve Bank of India has repealed its January 2021 instructions on grievance redress mechanisms for scheduled commercial banks, excluding regional rural banks, consolidating complaint-related disclosures into the Master Direction on Financial Statements and enhancing customer compensation under the Reserve Bank–Integrated Ombudsman Scheme, 2026. This withdrawal does not affect banks' existing obligations under current regulatory and supervisory instructions.