RBI extends NBFC Ombudsman schemehttps://indianexpress.com/article/business/banking-and-finance/rbi-extends-nbfc-ombudsman-scheme-5697016/

RBI extends NBFC Ombudsman scheme

The offices of the NBFC Ombudsmen are functioning in four metro centres — Chennai, Kolkata, Mumbai and New Delhi — and handle complaints of customers in the respective zones.

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The scheme was launched on February 23, 2018 for redressal of complaints against NBFCs registered with the RBI under Section 45-IA of the RBI Act.

The Reserve Bank of India (RBI) has extended the coverage of Ombudsman Scheme for non-banking financial companies (NBFCs) to eligible non deposit taking non-banking financial companies (NBFC-NDs) having asset size of Rs 100 crore or above with customer interface.

However, non banking financial company-infrastructure finance company (NBFC-IFC), core investment company (CIC), infrastructure debt fund-non-banking financial company (IDF-NBFC) and an NBFC under liquidation, are excluded from the ambit of the scheme, the Reserve Bank said.

The scheme was launched on February 23, 2018 for redressal of complaints against NBFCs registered with the RBI under Section 45-IA of the RBI Act, 1934 and covered all deposit accepting NBFCs to begin with. “It provides a cost-free and expeditious complaint redressal mechanism relating to deficiency in the services by NBFCs covered under the scheme,” the Reserve Bank said.

The offices of the NBFC Ombudsmen are functioning in four metro centres — Chennai, Kolkata, Mumbai and New Delhi — and handle complaints of customers in the respective zones. The scheme also provides for an appellate mechanism under which the complainant/ NBFC has the option to appeal against the decision of the Ombudsman before the Appellate Authority, it said.