RBI’s 2026 Internal Ombudsman Directions for Credit Information Companies: Detailed Compliance Guide
The Reserve Bank of India has notified the “(Credit Information Companies – Internal Ombudsman) Directions, 2026” in exercise of powers under Section 11 of the **Credit Information Companies (Regulation) Act, 2005`. These Directions take effect immediately (with limited deferred compliances) and overhaul the grievance redress structure within Credit Information Companies (CICs) by mandating an independent Internal Ombudsman (IO) mechanism at the apex level of each CIC’s complaint handling framework.
The 2026 Directions are designed to:
- Strengthen internal grievance redressal within CICs
- Ensure that complaints proposed to be partially resolved or wholly rejected undergo an independent review
- Introduce time-bound and fully automated complaint escalation to the IO
- Enhance oversight by the Board through its Consumer Protection Committee
- Facilitate better coordination with the RBI’s external Ombudsman under the Reserve Bank – Integrated Ombudsman Scheme
These Directions supersede the Master Direction – (Internal Ombudsman for Regulated Entities) Directions, 2023, with all prior actions and appointments under the 2023 Directions deemed to be made under the new 2026 framework.
Chapter I – Preliminary Provisions
Short title and commencement
- The framework is formally titled the “(Credit Information Companies – Internal Ombudsman) Directions, 2026”.
- The Directions are operative with immediate effect, except the compliance requirements under clause 7(2), clause 14(2) and clause 14(4), which must be fully implemented on or before June 30, 2026.
Power of suspension
The Reserve Bank of India (Reserve Bank) retains the power to:
- Suspend the operation of any or all provisions of these Directions, either:
- For all regulated entities, or
- For specified entities only
- Prescribe the period of suspension through an order
- Extend such suspension from time to time, as deemed appropriate
Applicability
These Directions apply to:
- All Credit Information Companies holding a valid certificate of registration under
Section 5(2)of the **Credit Information Companies (Regulation) Act, 2005`. - Collectively referred to as “CICs” and individually as a “CIC”.
Key definitions
For the purposes of these Directions, specific terms have defined meanings, including:
- “Competent Authority” – the Managing Director / Chief Executive Officer of the CIC.
- “Complaint” – any written or electronically submitted grievance alleging deficiency in service by a CIC, whether or not any specific relief is requested.
- “Credit Information Company (CIC)” – a company as defined in the Companies Act, 2013, registered under
Section 5(2)of the **Credit Information Companies (Regulation) Act, 2005`. - “Customer” – any person who uses, or has applied to use, a service offered by the CIC.
- “Deficiency in service” – any inadequacy, failure, or shortcoming in a service that the CIC is legally or contractually obliged to provide, irrespective of whether it causes financial loss to the customer.
- “Deputy Internal Ombudsman (Dy. IO)” – a person appointed under clause 6 of the Directions.
- “Financial Sector Regulatory Body” – includes:
- The Reserve Bank established under the Act, 1934;
- Securities and Exchange Board of India under the Securities and Exchange Board of India Act, 1992;
- Insurance Regulatory and Development Authority of India under the Insurance Regulatory and Development Authority of India Act, 1999;
- Pension Fund Regulatory and Development Authority under the Pension Fund Regulatory and Development Authority Act, 2013.
- “Internal Ombudsman (IO)” – a person appointed under clause 5.
- “Regulated Entity (RE)” – includes commercial banks, payments banks, small finance banks, NBFCs, non-bank PPI issuers, CICs covered under the IO framework, or any other entity notified by the Reserve Bank.
All expressions not specifically defined in these Directions shall carry the meanings assigned in the Banking Regulation Act, 1949, the Act, 1934, the Credit Information Companies (Regulation) Act, 2005, the Credit Information Companies Rules, 2006, the Credit Information Companies Regulations, 2006, the Reserve Bank – Integrated Ombudsman Scheme and relevant regulations/directions/guidelines of the Reserve Bank.
Chapter II – Office of the Internal Ombudsman
Appointment of Internal Ombudsman
Every CIC is required to appoint an IO who satisfies the following conditions:
Background and rank
- Must be a retired or serving officer equivalent to the rank of General Manager in an RE under the IO framework or in a Financial Sector Regulatory Body.
- Must possess at least seven years’ experience in one or more of the following functional areas:
- Banking
- Non-banking finance
- Regulation or supervision
- Payment and settlement systems
- Credit information
- Consumer protection
If the individual is a serving officer at the time of selection, he/she must resign or retire from that position before taking charge as IO.
Independence from the CIC
- Must never have been employed by the CIC, or its holding, associate, or subsidiary entities.
- Must not be currently employed with any of these entities.
Age limit
- The IO must not have crossed 70 years of age by the end of the proposed tenure.
Appointment in multiple entities
- A single individual may act as IO for more than one RE at the same time, subject to:
- Discretion of the concerned REs, and
- Approval from the Consumer Protection Committee of the Board of the appointing RE.
- A single individual may act as IO for more than one RE at the same time, subject to:
Appointment of Deputy Internal Ombudsman
Where required, CICs must also appoint a Dy. IO, who must:
- Be a retired or serving officer at an equivalent rank to Deputy General Manager in an RE under the IO framework or in a Financial Sector Regulatory Body.