**Executive Summary**
RBI's circular RBI/2025-26/207, dated February 11, 2026, informs all scheduled commercial banks (excluding Regional Rural Banks) about the withdrawal of an earlier circular regarding the Strengthening of Grievance Redress Mechanism in Banks. The circular, dated January 27, 2021, is withdrawn with immediate effect.
**Key Points / Main Content**
* **Withdrawal of Circular:**
* Circular RBI/2020-21/87 CEPD.CO.PRD.Cir.No.01/13.01.013/2020-21 on “Strengthening of Grievance Redress Mechanism in Banks” dated January 27, 2021, is withdrawn.
* The withdrawal is effective immediately from February 11, 2026.
* **Reason for Withdrawal:**
* The instructions in the withdrawn circular have been reviewed considering regulatory and supervisory developments, including the Master Direction on Financial Statements and enhanced consumer compensation limits under the Reserve Bank-Integrated Ombudsman Scheme, 2026.
* The Reserve Bank of India (Internal Ombudsman) Directions, 2026 have empowered Internal Ombudsmen to recommend award of compensation
* The withdrawal aims to rationalise instructions and avoid duplication.
* **Obligation to Maintain Grievance Redress:**
* The withdrawal does not absolve banks of their responsibility to maintain an effective customer grievance redress mechanism.
* Banks must continuously strengthen their internal grievance redress systems per existing regulatory and supervisory instructions and Board-approved policies.
**Impact Analysis**
**All Scheduled Commercial Banks (excluding Regional Rural Banks)**
* **Impact:**
* The circular dated January 27, 2021, on Strengthening of Grievance Redress Mechanism in Banks is no longer in effect.
* **Action Required:**
* Acknowledge the withdrawal of the circular.
* Ensure that internal grievance redress mechanisms are maintained and strengthened per extant regulations and supervisory instructions, as well as Board-approved policies.
* Ensure compliance with the Master Direction on Financial Statements and enhanced consumer compensation limits under the Reserve Bank-Integrated Ombudsman Scheme, 2026.
Key Entities Referenced
RBI/2020-21/87 CEPD.CO.PRD.Cir.No.01/13.01.013/2020-21: Circular regarding 'Strengthening of Grievance Redress Mechanism in Banks', withdrawn by this notification.
Reserve Bank-Integrated Ombudsman Scheme, 2026: Scheme related to consumer compensation framework.
Reserve Bank of India (Internal Ombudsman) Directions, 2026: Directions empowering Internal Ombudsmen to recommend award of compensation.
Master Direction on Financial Statements: Presentation and Disclosures (Directions): Direction prescribing complaint-related disclosures.
Reserve Bank of India: India's central bank.
भारतीय �रज़वर् बैंक
RESERVE BANK OF INDIA
RBI/2025-26/207
CO.CEPD.PRS.No.S1121/13-01-008/2025-2026 February 11, 2026
All Scheduled Commercial Banks (excluding Regional Rural Banks)
Madam/ Dear Sir,
Strengthening of Grievance Redress Mechanism in Banks – Review
Please refer to the circular RBI/2020-21/87 CEPD.CO.PRD.Cir.No.01/
13.01.013/2020-21 on “Strengthening of Grievance Redress Mechanism in Banks”
dated January 27, 2021.
2. The instructions contained in the above circular have since been reviewed in the
light of subsequent regulatory and supervisory developments. In particular, as part of
the Reserve Bank’s consolidation exercise, complaint-related disclosures have since
been prescribed under the relevant Master Direction on Financial Statements:
Presentation and Disclosures (Directions), dated November 28, 2025. Further, the
consumer compensation framework has been strengthened through enhanced
compensation limits under the Reserve Bank–Integrated Ombudsman Scheme, 2026,
and the Reserve Bank of India (Internal Ombudsman) Directions, 2026 have
empowered Internal Ombudsmen to recommend award of compensation. Banks’
grievance redress mechanisms are also subject to supervisory assessment and
follow-up through the regular supervisory processes. Accordingly, with a view to
rationalise instructions and avoid duplication, it has been decided to withdraw the
circular dated January 27, 2021.
3. It is clarified that this withdrawal is without prejudice to the obligations of banks to
maintain an effective customer grievance redress mechanism and to continuously
उपभो�ा िशक्षण और संरक्षण िवभाग, के�ीय कायार्लय, पहली मंिजल, अमर िब��ंग, सर पी.एम.रोड, फोटर्, मुंबई-400 001
Consumer Education and Protection Department, Central Office, 1st floor, Amar Building, Sir P.M. Road, Fort, Mumbai-400 001
टेलीफोन/Telephone No.022-2260 3000/2260 4000
िहंदी में काम करना आसान है, इसका प्रयोग बढ़ाइए ।strengthen their internal grievance redress systems, in terms of extant regulatory and
supervisory instructions and the bank’s own Board-approved policies.
4. Accordingly, the circular dated January 27, 2021, stands withdrawn with immediate
effect and shall be treated as repealed from the date of this circular.
Dr Neena Rohit Jain
(Chief General Manager)