**Executive Summary**
This circular, issued by the Reserve Bank of India (RBI) on February 11, 2026, informs all scheduled commercial banks about the withdrawal of circular RBI/2020-21/87 dated January 27, 2021, regarding the Strengthening of Grievance Redress Mechanism in Banks. The withdrawal is effective immediately and aims to rationalize instructions and avoid duplication, considering subsequent regulatory and supervisory developments.
**Key Points / Main Content**
* **Withdrawal of Previous Circular:**
* Circular RBI/2020-21/87 dated January 27, 2021, on Strengthening of Grievance Redress Mechanism in Banks is withdrawn.
* The withdrawal is effective immediately and the circular is repealed from the date of this circular.
* **Rationale for Withdrawal:**
* The decision to withdraw the circular is based on a review considering subsequent regulatory and supervisory developments.
* Developments include the Reserve Bank's consolidation exercise, the prescription of complaint-related disclosures under the Master Direction on Financial Statements dated November 28, 2025, the enhanced consumer compensation framework under the Reserve Bank-Integrated Ombudsman Scheme, 2026, and the empowerment of Internal Ombudsmen to recommend compensation under the Internal Ombudsman Directions, 2026.
* The aim is to rationalise instructions and avoid duplication.
* **Obligations of Banks:**
* The withdrawal does not prejudice the obligations of banks to maintain an effective customer grievance redress mechanism.
* Banks must continuously strengthen their internal grievance redress systems as per extant regulatory and supervisory instructions and board-approved policies.
**Impact Analysis**
**Stakeholder: All Scheduled Commercial Banks (excluding Regional Rural Banks)**
* **Impact:**
* The banks are no longer bound by the specific instructions in the withdrawn circular dated January 27, 2021.
* The banks need to refer to other Master Directions (Financial Statements dated November 28, 2025, RBI Integrated Ombudsman Scheme, 2026, and Internal Ombudsman Directions, 2026).
* Banks need to adhere to extant regulatory and supervisory instructions and their own Board-approved policies.
* **Action Required:**
* Acknowledge the withdrawal of the circular.
* Ensure continued adherence to the overarching requirements for an effective customer grievance redress mechanism.
* Strengthen internal grievance redress systems.
Key Entities Referenced
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: Circular withdrawn in this notice regarding the strengthening of the grievance redress mechanism in banks.
Reserve Bank-Integrated Ombudsman Scheme, 2026: Scheme referenced in the notice related to enhanced compensation limits.
Reserve Bank of India (Internal Ombudsman) Directions, 2026: Directions referenced in the notice, empowering Internal Ombudsmen to recommend compensation.
Reserve Bank of India: The issuing authority of the circular and regulatory body mentioned in the notice.
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)