Page 12 - Banking Finance February 2026

RBI CORNER

Base-year revision to en-

able calibrated policy-
making: RBI Governor
Reserve Bank of India Governor Sanjay R R R R Ree ee ess ss see ee err rr rvv vv ve Be B e Be B e Baa aa ann nn nkk kk k
Malhotra has welcomed the revision of
base years for key macroeconomic in-
dicators, stating that the exercise will
facilitate more calibrated policy-mak- News
ing, support price stability and aid eco-
nomic growth. The Ministry of Statis-
tics and Programme Implementation
(MoSPI) has announced that the re-
vised base years for national accounts,
including gross domestic product (GDP)
and consumer price index (CPI), will RBI tightens internal ombudsman norms to
come into effect from February 2026. strengthen customer protection
Malhotra described the revision as a The Reserve Bank of India (RBI) has overhauled the framework governing
timely step that strengthens India's Internal Ombudsmen (IOs) in banks, marking a significant shift towards stron-
statistical system. He emphasised that ger customer protection and higher accountability within the banking sys-
the exercise goes beyond a mere base- tem. Under the revised norms, banks can no longer close complaints pro-
year update, encompassing changes in posed for rejection without a mandatory review by the Internal Ombuds-
methodologies, weights, item baskets, man, effectively curbing arbitrary grievance disposal.
data sources and computation tech- The regulator has stressed that the IO mechanism must function as an in-
niques. According to the governor, up- dependent and credible redressal layer, rather than a procedural formality.
dating the CPI base year is particularly By strengthening the authority, visibility and independence of IOs, the RBI
important to ensure that inflation data aims to improve first-level complaint resolution and reduce the volume of
reflects current consumption patterns unresolved grievances escalating to the RBI's external Ombudsman scheme.
and household spending behaviour,
which have evolved significantly over Earlier rules required banks to appoint Internal Ombudsmen but allowed
time. considerable discretion in defining their role and reporting structure, which
often diluted their effectiveness. The revised framework seeks to address
In parallel, the RBI announced the es- these gaps, especially in an environment where digital transactions, algo-
tablishment of a Centralised Receipt rithm-driven lending and outsourced services have increased the complex-
and Processing Centre (CRPC) to con- ity of customer disputes.
duct preliminary scrutiny of complaints
received under the Integrated Om- The move is expected to enhance customer confidence while raising com-
budsman Scheme. Effective July 1, pliance and reputational risks for banks that fail to resolve grievances trans-
2026, all complaints-whether filed parently and fairly.
online, by email or post-will be pro-
cessed centrally to assess admissibility ated that information related to non- RBL Bank, Yes Bank and State Bank of
before further action. performing assets (NPAs), defaulters, India have approached the CIC, object-
penalties and inspection reports is "li- ing to the release of sensitive supervi-
RBI backs disclosure of able to be disclosed" under the Right sory information.
NPA data as banks move to Information (RTI) Act, even as four The cases stem from RTI applications
major banks have challenged such dis- seeking details such as lists of top
CIC closures before the Central Informa- NPAs, willful defaulters, inspection re-

The Reserve Bank of India has reiter- tion Commission (CIC). Bank of Baroda, ports and monetary penalties imposed

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