The 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.
The Bench held that the directions issued by the single-judge went beyond the Court's powers under Article 226 of the Indian Constitution.
It 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 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 the 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. Strengthening this review process would make grievance redressal more effective and significantly reduce litigation in courts and consumer forums, the Court had said.
However, the RBI filed an appeal against these directions.