Delhi High Court stays second-level review order for RBI ombudsman complaints

The Delhi High Court on Thursday stayed a November 27, 2025, order requiring second-level human review by trained legal personnel for complaints rejected by the RBI ombudsman
| Photo Credit:
Kesavan A N 1612@Chennai

On Thursday, the Delhi High Court suspended its earlier mandate for secondary human oversight by legally trained staff when complaints are dismissed by the Reserve Bank of India’s ombudsman.

A division bench comprising Chief Justice Devendra Kumar Upadhyaya and Justice Tejas Karia granted interim relief to the RBI on appeal, halting specific directives from a November 27, 2025 single-judge ruling. The court scheduled March 17 for further proceedings.

“Consequently, until the next hearing date, paragraphs 47(5) and 48 of the challenged order will remain suspended,” stated the bench.

The stay also extends to a requirement that RBI’s deputy governor submit an affidavit by January 15 detailing compliance measures with the single judge’s directives.

The original November 2025 judgment introduced multiple reforms aimed at improving customer grievance resolution within the RBI ombudsman framework.

Key among these directions was a mandate ensuring rejected complaints received secondary review by experienced legal professionals—such as retired judges or advocates with at least ten years’ specialization—to prevent dismissals based on minor technicalities.

The ruling emphasized that optimizing the complaint redressal system could significantly decrease subsequent litigation in courts and consumer forums.

Legal Challenge

Representing RBI, Solicitor General Tushar Mehta argued before the bench that the single judge had overstepped constitutional jurisdiction under Article 226.

Mehta contended that the challenged directives sought modifications to statutory schemes established under the Banking Regulation Act and Payment of Settlement Systems Act, which can only be amended by designated authorities under those laws.

Consumer-Focused Reforms

In the November judgment, the court observed that systematic rejections of public complaints demonstrated insufficient consumer-centric approaches within the ombudsman’s operations.

The ruling directed RBI to implement mechanisms preventing overly technical dismissals of customer grievances and to provide opportunities for complainants to rectify procedural errors in submissions.

The case originated from a petition filed by a credit card holder affected by fraudulent financial activity.

Published on January 8, 2026