'No more being ignored': RBI expands ombudsman cover, even rural banks now answerable

In a shift toward consumer empowerment, RBI Governor Sanjay Malhotra unveiled a slate of consumer-centric reforms during the Monetary Policy Committee (MPC) address on October 1. With inflation easing and credit conditions improving, the Reserve Bank of India is now turning its focus to everyday banking experiences.

Among the biggest takeaways:

Digital banking for all: Holders of Basic Savings Bank Deposit (BSBD) accounts—typically no-frills accounts used by lower-income and rural customers—will now get mobile and internet banking services without additional fees. This expands access to online banking tools for millions.

Stronger complaint redress: The RBI plans to tighten the Internal Ombudsman framework to ensure banks and financial institutions handle complaints more effectively. In addition, rural cooperative banks will be brought under the RBI Ombudsman Scheme, expanding consumer protection beyond urban financial institutions.

“These measures are designed to enhance consumer satisfaction and improve trust in the financial system,” Malhotra said, signaling the RBI’s intent to make customer service a pillar of banking reform.

The governor also emphasized that the central bank will remain vigilant and data-driven in its policy responses, with price stability and growth support remaining twin priorities.