As reported earlier in these columns, the Reserve Bank of India (RBI) has brought State Cooperative Banks and Central Cooperative Banks under the ambit of the Reserve Bank – Integrated Ombudsman Scheme, 2021 (RB-IOS, 2021). The directive will come into effect from November 1, 2025.
NAFSCOB Chairman Ravindra Rao welcomed the move, calling it a timely step. Earlier, Sahakar Bharati leader Satish Marathe, who also serves on the RBI Central Board, explained how the initiative will provide greater assurance to rural customers.
The notification, issued by Executive Director Neeraj Nigam, has been passed under the powers conferred by Section 35A of the Banking Regulation Act, 1949. It partially modifies the earlier notification dated August 5, 2022, which had excluded these cooperative entities from the purview of the Ombudsman framework.
According to the RBI, the decision has been taken “in public interest” to provide customers of cooperative banks the same level of grievance redressal mechanism that is available to depositors of commercial and regional rural banks. The move is expected to bring greater transparency, accountability, and accessibility in handling customer complaints.
With this inclusion, the scheme now covers all Commercial Banks, Regional Rural Banks, State Cooperative Banks, Central Cooperative Banks, Scheduled and Non-Scheduled Urban Cooperative Banks with deposits of Rs 50 crore and above, Non-Banking Financial Companies (NBFCs) with assets of Rs 100 crore and above, System Participants, and Credit Information Companies.
The RBI’s Integrated Ombudsman Scheme, launched in 2021, was designed to simplify and consolidate multiple grievance redressal mechanisms under one unified framework. The latest expansion marks another step toward ensuring fair and efficient consumer protection across all regulated banking entities.
Reacting to the RBI’s decision, NAFSCOB Chairman K Ravinder Rao termed it a good and timely step. He said, “It’s a good decision and a welcome move. There were some confusion and a little bit of uncertainty in the minds of customers regarding cooperative banks. This step will boost customer confidence. For us, the depositor is foremost, and this measure is in their best interest. The uncertainties lingering in the minds of customers are now cleared.”
