What changed
The RBI has withdrawn its 2021 circular on strengthening grievance redress mechanisms in banks. This decision is due to subsequent regulatory and supervisory developments, including updated Master Directions and the Reserve Bank–Integrated Ombudsman Scheme. The withdrawal aims to rationalize instructions and avoid duplication.
What it means for you
Banks must still maintain effective customer grievance redress mechanisms, adhering to current regulatory and supervisory instructions. The withdrawal of the circular does not alleviate banks' obligations to strengthen their internal grievance redress systems. Banks will continue to be subject to supervisory assessment and follow-up through regular supervisory processes.
What you must do
- Review current grievance redress mechanisms
- Ensure compliance with updated regulatory instructions
- Maintain effective customer grievance redress systems
Who it affects
All Scheduled Commercial Banks (excluding Regional Rural Banks), Bank customers
Why was the 2021 circular withdrawn?
The circular was withdrawn due to subsequent regulatory and supervisory developments, including updated Master Directions and the Reserve Bank–Integrated Ombudsman Scheme.
Are banks still required to maintain grievance redress mechanisms?
Yes, banks must still maintain effective customer grievance redress mechanisms, adhering to current regulatory and supervisory instructions.