Internal Ombudsman Directions for Non-Bank PPI Issuers 2026 · RBI/CEPD/2025-26/385

RBI/CEPD/2025-26/385
CEPD.PRD.No.S1031/13.01.019/2025-26

January 14, 2026

Reserve Bank of India (Non-Bank Prepaid Payment Instruments Issuers - Internal Ombudsman) Directions, 2026

In exercise of the powers conferred by Section 18 of the Payment and Settlement Systems Act, 2007, the Reserve Bank of India, being satisfied that it is necessary and expedient in the public interest so to do, hereby, issues the Directions hereinafter specified.

These Directions are issued with a view to strengthen the Internal Grievance Redress mechanism within a non-bank prepaid payment instruments issuer and ensure a speedy and meaningful resolution of customer complaints by enabling a review before their rejection, by an apex level authority within the non-bank prepaid payment instruments issuer.

Chapter I
Preliminary

1. Short Title and Commencement

(1) These Directions shall be called the Reserve Bank of India (Non-Bank Prepaid Payment Instruments Issuers - Internal Ombudsman) Directions, 2026.

(2) These Directions shall come into force with immediate effect except clause 7(2), 14(2) and 14(4) which shall be complied with, latest by June 30, 2026.

2. Suspension

(1) The Reserve Bank, if it is satisfied that it is expedient so to do, may, by an order, suspend for such period as may be specified in the order, the operation of any or all of the provisions of these Directions, either generally or in relation to any specified regulated entity.

(2) The Reserve Bank may by an order, extend from time to time, the period of any suspension ordered as aforesaid by such period, as it may deem fit.

3. Applicability

(1) These Directions shall be applicable to Non-Bank Prepaid Payment Instruments Issuers (hereinafter collectively referred to as 'PPI issuers' and individually as a 'PPI issuer') as defined under clause 4(1)(h) of these Directions and having more than one crore Prepaid Payment Instruments outstanding as on March 31, 2025, or thereafter.

(2) The directions shall also be applicable to the PPI issuers, which meets the above mentioned criteria after March 31, 2025, with effect from six months from meeting the eligibility criteria. The directions shall continue to remain applicable to a PPI issuer, even if the number of Prepaid Payment Instruments outstanding falls below the threshold at a later date.

4. Definitions

(1) In these Directions, unless the context states otherwise, the terms herein shall bear the meanings assigned to them as below:

• (a) “Competent Authority” means Managing Director/ Chief Executive Officer of the PPI issuer;
• (b) “Complaint” means a representation in writing or through other modes alleging deficiency in service on the part of the PPI issuer with or without seeking relief thereon;
• (c) “Customer” means a person who uses, or is an applicant for, a service provided by the PPI issuer;
• (d) “Deficiency in service” means a shortcoming or an inadequacy in any service, which the PPI issuer is required to provide statutorily or otherwise, which may or may not result in financial loss or damage to the customer;
• (e) “Deputy Internal Ombudsman (Dy. IO)” means any person appointed under clause 6 of these Directions;
• (f) “Financial Sector Regulatory Body” means regulatory body for financial sector entities and includes:
  • (i) The Reserve Bank of India established under the Reserve Bank of India Act, 1934;
  • (ii) The Securities and Exchange Board of India established under the Securities and Exchange Board of India Act, 1992;
  • (iii) The Insurance Regulatory and Development Authority of India established under the Insurance Regulatory and Development Authority of India Act, 1999;
  • (iv) The Pension Fund Regulatory and Development Authority established under the Pension Fund Regulatory and Development Authority Act, 2013;
• (g) “Internal Ombudsman (IO)” means any person appointed under clause 5 of these Directions;
• (h) “Non-Bank Prepaid Payment Instruments Issuer” means a company, as defined in the Companies Act, 2013, which has been granted a Certificate of Authorisation by the Reserve Bank of India under Section 7(1) of the Payment and Settlement Systems Act, 2007 (51 of 2007) to operate as a Prepaid Payment Instrument Issuer (PPI);
• (i) “Regulated Entity (RE)” means a commercial bank or payments bank or small finance bank or a non-banking financial company or a non-bank prepaid payment instrument issuer or a credit information company which are covered under the purview of the Internal Ombudsman framework, or any other entity as may be specified by the Reserve Bank from time to time.

(2) All other expressions, unless defined herein, shall have the same meaning as assigned to them under the Banking Regulation Act, 1949, the Reserve Bank of India Act, 1934, the Payment and Settlement Systems Act, 2007, the Credit Information Companies (Regulation) Act, 2005, the Credit Information Companies Rules, 2006, the Credit Information Companies Regulations, 2006, or the Reserve Bank - Integrated Ombudsman Scheme (as amended from time to time) or regulations, directions and guidelines issued by the Reserve Bank of India.

Chapter II
Office of the Internal Ombudsman

5. Appointment of Internal Ombudsman

(1) The IO shall either be a retired or serving officer, in the rank equivalent to a General Manager in the RE under the purview of the Internal Ombudsman framework or a Financial Sector Regulatory Body, having necessary skills and experience of minimum seven years of working in areas such as banking, non-banking finance, regulation, supervision, payment and settlement systems, credit information or consumer protection.

Provided that, if the person is a serving officer, he / she is required to relinquish the same before assuming charge as IO.

(2) The IO shall previously not have been employed, nor presently be employed, by the PPI issuer or a holding, associate or subsidiary company of the PPI issuer.

(3) The IO shall not be over 70 years of age before the completion of the tenure.

(4) A person may work as the IO in more than one RE simultaneously at the discretion of the REs concerned, subject to the approval of the Board or Customer Service Committee / Consumer Protection Committee of the Board of the appointing RE.

6. Appointment of Deputy Internal Ombudsman

(1) The Dy. IO shall either be a retired or serving officer, in the rank equivalent to a Deputy General Manager in the RE under the purview of the Internal Ombudsman framework or a Financial Sector Regulatory Body, having necessary skills and experience of minimum five years of working in areas such as banking, non-banking finance, regulation, supervision, payment and settlement systems, credit information or consumer protection.

Provided that, if the person is a serving officer, he / she is required to relinquish the same before assuming charge as Dy. IO.

(2) The Dy. IO shall previously not have been employed, nor presently be employed, by the PPI issuer or a holding, associate or subsidiary company of the PPI issuer.

(3) The Dy. IO shall not be over 70 years of age before the completion of the tenure.

(4) The Dy. IO shall not be employed in more than one RE simultaneously.

7. Number of Internal Ombudsman / Deputy Internal Ombudsman

(1) Every eligible PPI issuer shall appoint at least one IO.

(2) The Board of the PPI issuer shall determine, at least once in a year, the number of IO/ Dy. IO to be appointed having due regard to volume and complexity of the complaints received, and ensuring that the IO/ Dy. IO get sufficient time to apply his/her mind on the principles of fairness, equity and natural justice while reviewing the resolution provided by the PPI issuer.