Delhi HC Pauses RBI's Human Review Rule for Consumer Complaints

LAWCOURT

Overview

The Delhi High Court has stayed a directive mandating a second human review of consumer complaints rejected by the Reserve Bank of India's ombudsman. A division bench ruled the original order overstepped judicial powers, halting the requirement for experienced personnel to re-examine dismissed cases and sparing the RBI Deputy Governor from filing a compliance affidavit.

Delhi High Court Halts RBI's Second Review Mandate

Delhi High Court on Thursday stayed an order directing the Reserve Bank of India (RBI) to ensure that all consumer complaints rejected by its banking ombudsman must undergo a second level of review by human supervision. A Division Bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tejas Karia stayed directions issued by Justice Prathiba M Singh on November 27, 2025.

Judicial Overreach Questioned

The Bench held that the directions issued by the single-judge went beyond the Court's powers under Article 226 of the Indian Constitution. The single-judge had issued a slew of directions to the RBI to strengthen its grievance redressal mechanism and ensure that its banking ombudsman does not simply reject complaints in a mechanical manner. It was ordered that all complaints rejected by the RBI ombudsman must undergo a second level of review by experienced, legally trained personnel to prevent dismissals due to minor errors.

Government Appeals Stay

The court also stayed the direction to the RBI Deputy Governor to submit a compliance affidavit. "Prima facie, we find force in the submissions made by the Solicitor General Tushar Mehta. Accordingly, we provide that the directions contained in paragraph 47(5) and 48 of the impugned judgment by the learned single judge dated November 27, 2025, shall remain stayed," the Court ordered. The Central government had filed an appeal against the single-judge's directions.

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