Reserve Bank of India (Non-Bank Prepaid Payment Instruments Issuers - Internal Ombudsman) Directions, 2026
UR
- Applies toNon-bank prepaid payment instrument issuers
- StatusIn force
- IssuedJan 14, 2026
- Amendmentsnone tracked
- Length65 points in 5 sections · 6 min read
The four dates on this rule
- PublishedJan 14, 2026The day RBI put this document out. This is the same day as the Issued date on this rule.
- Starts to applyJan 14, 2026The day this rule starts to apply, as RBI's own text states it.
- Time to get readyNoneIt starts to apply on the day it was published.
- Last date to actJune 30, 2026The day by which the work this rule asks for must be finished.
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49 of the 65 points name no product and bind every product. All products.
Numbers to remember
| one crore | These rules bind an issuer with more than one crore prepaid instruments outstanding. RBI Para 3(1) |
| seven years | The ombudsman needs at least seven years in banking, regulation, payments or consumer protection. RBI Para 5(1) |
| 70 years | The ombudsman must not pass 70 years of age before the term ends. RBI Para 5(3) |
| five years | A deputy needs at least five years of relevant working experience. RBI Para 6(1) |
| one month | If both are away, a serving officer of general manager rank may stand in for one month. RBI Para 8(3) |
| three years | A term must be fixed and must not be shorter than three years. RBI Para 8(4) |
| 10 working days | If the post falls vacant for any other reason, tell RBI within 10 working days. RBI Para 8(6) |
| three months | A new ombudsman must be appointed within three months of the vacancy. RBI Para 8(6) |
| six months | Reports go to the board, ideally every quarter and never less often than every six months. RBI Para 13(2) |
| 20 days | In every other case the complaint must reach the office within 20 days. RBI Para 14(1) |
| 30 days | The final decision must reach the customer within 30 days of the complaint. RBI Para 14(9) |
What it says
How firm is each point
Stated by RBI — RBI’s own paragraph says this. We have only made it plainer.
Our reading — BankPulse read RBI’s paragraph and shortened it. The paragraph is the authority, not this line.
Needs judgement — RBI leaves this to the bank to settle, so nobody can give you a fixed number here.
Opening paragraphs
1. What this book does
This book creates an internal ombudsman to review complaints that were refused.
Chapter I. Preliminary
1. Who is covered
These rules bind an issuer with more than one crore prepaid instruments outstanding.
2. Start date
These rules took effect at once.
3. Three clauses have a deadline
Three of the clauses had to be met by 30 June 2026.
4. Words from the Acts
Any other word takes its meaning from the Banking Regulation Act or the RBI Act.
Chapter II. Office of the Internal Ombudsman
Must know
1. Seven years of experience
The ombudsman needs at least seven years in banking, regulation, payments or consumer protection.
2. Never worked here
The ombudsman must never have worked for this entity, its holding company or its subsidiary.
3. Age limit
The ombudsman must not pass 70 years of age before the term ends.
4. Five years for a deputy
A deputy needs at least five years of relevant working experience.
5. Never leave the seat empty
The post must never fall vacant. The deputy stands in when the ombudsman is away.
6. A stand-in for one month
If both are away, a serving officer of general manager rank may stand in for one month.
7. The stand-in reports nowhere
That stand-in must not report to any business line while acting as ombudsman.
8. Three years at least
A term must be fixed and must not be shorter than three years.
9. Five years at most
Counting every extension, one person may not serve beyond five years.
10. No removal without the board
The ombudsman may not be removed mid-term without the board's approval.
11. Tell RBI within ten days
If the post falls vacant for any other reason, tell RBI within 10 working days.
12. Fill it within three months
A new ombudsman must be appointed within three months of the vacancy.
13. Pay may not be cut
Once the pay and benefits are set, they may not be worsened during the term.
14. Audit may not judge decisions
That audit must not judge whether the ombudsman decided a case rightly.
15. Report every quarter
Reports go to the board, ideally every quarter and never less often than every six months.
Do it
16. Leave the old post first
A serving officer must give up that post before taking charge as ombudsman.
17. Rank of the deputy
A deputy ombudsman must rank with a deputy general manager.
18. At least one ombudsman
Every covered entity must appoint at least one ombudsman.
19. Count them once a year
The board must decide once a year how many ombudsmen are needed.
20. Spread the experience
Where more are appointed, their experience should differ and their work should be split.
21. Overlap the two
The outgoing and incoming ombudsman should overlap for a reasonable time.
22. Give the office staff
The entity must give the ombudsman's office as many officers and staff as it needs.
23. Give it the systems
Office space and information technology support must be provided as well.
24. Place it at the top
The office should sit at the head office or the corporate office.
25. An audit every year
Internal audit must check every year that these rules are being followed.
26. Study the pattern each quarter
Every quarter the office must study the pattern of all complaints received.
27. Fix the root cause
The ombudsman must suggest how to stop complaints of the same kind recurring.
28. Every overrule is reviewed
Every case that was overruled must be placed before the board for review.
Background
29. The post is contractual
The ombudsman is appointed on contract, not as an employee.
30. Two reporting lines
The ombudsman reports to the competent authority for administration and to the board for work.
31. No direct complaints
The ombudsman does not take complaints from customers or from the public.
32. Only refused complaints
The office sees only complaints already examined and then refused or part settled.
33. Extra for time and trouble
More may be recommended for lost time, expenses, harassment and mental agony.
34. A seat at the board
The ombudsman is a permanent invitee to the board's meetings.
35. Only one person may overrule
A decision of the ombudsman may be overruled only by the competent authority.
36. Show what RBI decided
Cases the RBI ombudsman decided for the customer go to the board each quarter.
Chapter IV. Procedural Guidelines for PPI
Must know
1. Twenty days otherwise
In every other case the complaint must reach the office within 20 days.
2. Thirty days to answer
The final decision must reach the customer within 30 days of the complaint.
BankPulse example. A complaint reaches the PPI issuer on 1 September. The final decision must reach the customer within 30 days, which is by 1 October.
3. Keep the name private
The ombudsman's contact details must not be published, because customers may not write directly.
Do it
4. An automatic system
A fully automatic complaint system must send every refused complaint to the office.
5. Write the procedure down
A standard operating procedure must set out how complaints and information move.
6. Write down the reason
The ombudsman must record a reasoned decision in every case.
7. Say it was reviewed
Where the refusal stands, the reply must say the ombudsman reviewed it.
8. Point to RBI's ombudsman
A customer still refused must be told he may go to the RBI ombudsman.
9. Send the decision upward
When a case goes to the RBI ombudsman, the internal decision must go with it.
10. Teach the staff
The pattern of complaints must be used in staff training to make handling consistent.
11. Compare with RBI's rulings
The board must count the cases where RBI's ombudsman decided differently.
12. Tell the whole staff
The appointment and these rules must be told to every branch and office.
Background
13. Only three labels
A complaint may be marked only fully resolved, partly resolved or wholly rejected.
14. A senior look first
A refused or part settled complaint is reviewed at a fairly senior level first.
15. What is left out
Fraud without customer harm, staff matters and court cases are outside these rules.
16. Send the doubtful ones anyway
Refused complaints under the first two headings still go to the ombudsman for a view.
17. Decide on the records
The ombudsman decides from the entity's records and the customer's own papers.
18. May ask for more
The ombudsman may meet staff and call for any further record that is needed.
19. May ask the customer
The ombudsman may seek written or spoken submissions from the customer.
Chapter V. Regulatory and Supervisory Oversight by the Reserve Bank
1. A quarterly return
A report on the ombudsman's work goes to RBI every quarter, in RBI's own format.
2. RBI may study refusals
RBI may review cases where the entity did not accept the ombudsman's decision.
3. Due by the fifteenth
That report is due on or before the 15th day of the month after the quarter.
Chapter VI. Repeal Provisions
1. Old scheme repealed
The Internal Ombudsman Directions of 2023 stand repealed by this book.
2. Earlier appointments stand
Appointments and actions taken under the old rules continue to hold good.
The same subject for other kinds of institution
The same subject for other kinds of institution.