RBI Deputy Governor Swaminathan J has advised financial institutions to strengthen their internal ombudsman system. He said that instead of settling customer complaints, the focus should be on resolving them, so that customer trust is maintained.
Mumbai (Maharashtra) [भारत]July 20 (ANI): Reserve Bank of India Deputy Governor Swaminathan J has urged regulated entities to strengthen their internal ombudsman mechanisms. He has asked to ensure that customer complaints are resolved impartially and independently within the institutions. This has been said in a statement of the apex bank.
Speaking at the Internal Ombudsman Conference organized by the RBI in Mumbai on July 13, 2026, he said that a large part of the complaints later resolved by the RBI Ombudsman in favor of customers were not even referred to the Internal Ombudsman. He said, “Customer service is a shared responsibility that starts at the board, moves up to senior management and operating teams, and ultimately is reflected in every interaction a customer has with an organization. Every single one of us here has a critical role to play in strengthening that ecosystem.”
There is a need to strengthen the grievance redressal system
He highlighted that as the financial ecosystem becomes larger, more digital and increasingly interconnected, the need for a robust grievance redressal system has become even more important. In this context, he said that the internal ombudsman mechanism plays an important role in resolving customer complaints within financial institutions.
Therefore, “the internal ombudsman must bring something that no procedure manual can fully prescribe – independent judgement, impartiality and empathy. These qualities transform grievance redressal from a procedural exercise into a meaningful solution for the customer,” he said.
Understand the difference between closing and resolving a complaint
In his speech, he further said that regulated entities should distinguish between ‘closing’ a complaint and actually ‘resolving’ it, as once a response is issued the matter may be technically closed while the customer’s concern remains unresolved. He emphasized that grievance redressal should be focused on delivering a fair and timely outcome, rather than merely justifying the institution’s decision, and should be evaluated not just by the number of grievances dealt with, but by the quality of resolution.
According to the release, Swaminathan J also urged internal ombudsmen to exercise independent judgment, ensure impartiality in their approach and represent the client’s perspective in institutional decision making.
“Ultimately, the success of the internal ombudsman framework will not be measured by the number of complaints handled. It will be measured by customers’ confidence that their concerns will receive a fair hearing and a fair resolution within the regulated entity,” he said. (ANI)
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