The Reserve Bank of India (RBI), on February 11, 2026, issued a circular reviewing and withdrawing its earlier circular dated January 27, 2021, on “Strengthening of Grievance Redress Mechanism in Banks.” The review was undertaken in light of subsequent regulatory and supervisory developments, including updated disclosure requirements and enhanced consumer protection measures.
The RBI noted that complaint-related disclosures are now covered under the Master Direction on Financial Statements: Presentation and Disclosures (Directions) dated November 28, 2025. Additionally, the Reserve Bank–Integrated Ombudsman Scheme, 2026 has enhanced compensation limits, and the Reserve Bank of India (Internal Ombudsman) Directions, 2026 em power Internal Ombudsmen to recommend compensation. Grievance redress mechanisms of banks are also assessed through regular supervisory processes. In view of these developments and to avoid duplication, the 2021 circular has been withdrawn.
The withdrawal is without prejudice to banks’ obligation to maintain robust and effective grievance redress mechanisms in accordance with existing regulatory and supervisory instructions and their Board-approved policies. The circular dated January 27, 2021 stands withdrawn with immediate effect.
[RBI/2025-26/207 | CO.CEPD.PRS.No.S1121/13-01-008/2025-2026]
