The Reserve Bank of India has issued the Reserve Bank of India (Small Finance Banks – Internal Ombudsman) Directions, 2026 to establish a dedicated grievance redress framework for Small Finance Banks. The Directions seek to align customer complaint handling standards of Small Finance Banks with those applicable to Commercial Banks.
Applicability
The Directions apply to Small Finance Banks having ten or more banking outlets in India as on March 31, 2025. Small Finance Banks meeting the eligibility criteria after this date will be required to comply within six months.
Amendments
A standalone Internal Ombudsman framework has been prescribed exclusively for Small Finance Banks. The Directions mandate appointment of an Internal Ombudsman and Deputy Internal Ombudsman and require independent review of all partially resolved and rejected complaints before closure. Enhanced governance measures, including Board oversight, reporting requirements, and uniform escalation timelines, have also been introduced, replacing the earlier common framework under the 2023 Master Direction.
Link – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13272&Mode=0
