India expands banking ombudsman powers to rural co-ops and boosts consumer protections.

The Reserve Bank of India has expanded its ombudsman system to include rural cooperative banks and granted internal ombudsmen new powers to award compensation and directly engage customers. These reforms, announced during the October 1, 2025, monetary policy meeting, aim to improve grievance resolution, enhance transparency, and strengthen consumer protection across financial institutions. The changes follow a review of existing processes and are part of broader efforts to boost trust and accountability in India’s banking sector.