The Reserve Bank of India (RBI) has issued a notification dated October 7, 2025, under Section 35A of the Banking Regulation Act, 1949, partially modifying its earlier notification dated August 5, 2022, to expand the scope of the Reserve Bank – Integrated Ombudsman Scheme, 2021 (RB-IOS, 2021). The RBI has directed that State Co-operative Banks and Central Co-operative Banks shall be treated as “Regulated Entities” under the Scheme, effective from November 1, 2025. This extension ensures that these banks are now subject to the Scheme’s provisions for customer grievance redressal, except where specifically excluded.
With this inclusion, the RB-IOS, 2021 now covers all commercial banks, regional rural banks, scheduled and non-scheduled primary (urban) co-operative banks with deposits of ₹50 crore and above, and the newly included State and Central Co-operative Banks. Additionally, the Scheme applies to non-banking financial companies (excluding housing finance companies) that accept deposits or have customer interfaces with assets of ₹100 crore and above, all system participants as defined under the Scheme, and credit information companies.
This modification aims to provide a uniform mechanism for addressing complaints and disputes across a broader spectrum of regulated financial institutions, strengthening consumer protection in the banking and financial sector. The move reflects RBI’s continuing effort to enhance transparency, accountability, and timely grievance redressal for depositors and other customers interacting with banks and financial entities.
Reserve Bank of India
India’s Central Bank
Notifications
Reserve Bank – Integrated Ombudsman Scheme, 2021 (RB-IOS, 2021)
EXECUTIVE DIRECTOR
Reserve Bank of India
Mumbai
Reserve Bank – Integrated Ombudsman Scheme, 2021 (RB-IOS, 2021)
NOTIFICATION
Ref. CO.CEPD.PRS.No.S684/13-55-001/2025-2026
October 07, 2025
In exercise of the powers conferred under Section 35A of the Banking Regulation Act, 1949, and in partial modification of the notification CEPD. PRD. No. S544/13.01.001/2022-23 dated August 05, 2022, the Reserve Bank of India, being satisfied that it is in public interest to do so, hereby directs that the State Co-operative Banks, and Central Co-operative Banks, as defined in the Banking Regulation Act, 1949, shall also be treated as a ‘Regulated Entity’ for the purpose of Reserve Bank – Integrated Ombudsman Scheme, 2021 (the Scheme).
2. Accordingly, the Schemeshall be applicable to State Co-operative Banks, Central Co-operative Banks, except to the extent specifically excluded under the Scheme.
3. This Notification shall come into force with effect from November 01, 2025.
4. With this inclusion, the Scheme covers the following regulated entities:
a. all Commercial Banks, Regional Rural Banks, State Co-operative Banks, Central Co-operative Banks, Scheduled Primary (Urban) Co-operative Banks, and Non-Scheduled Primary (Urban) Co-operative Banks with deposits size of ₹50 crore and above as on the date of the audited balance sheet of the previous financial year;
b. all Non-Banking Financial Companies (excluding Housing Finance Companies) which (a) are authorised to accept deposits; or (b) have customer interface, with an assets size of ₹100 crore and above as on the date of the audited balance sheet of the previous financial year;
c. all System Participants as defined under the Scheme; and
d. Credit Information Companies.
(Neeraj Nigam)
