RBI Introduces Ombudsman Against NBFCs

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    With effect from February 23, 2018 under 45-IA of the RBI Act, 1934, RBI introduces NBFC Ombudsman for faster and cost-free grievance redressal mechanism. In a notification, the apex banker said, "To promote conducive credit culture among the Non-Banking Financial Companies and to regulate the credit system of the country to its advantage, it is necessary to provide for a system of Ombudsman for redressal of complaints against deficiency in services concerning deposits, loans and advances and other specified matters".

    RBI Introduces Ombudsman Against NBFCs

    Ombudsman is a senior official appointed to look after grievance issue and provide the best solution to customers. As far as the NBFC ombudsman is concerned, the govt has appointed 4 ombudsman with their locations at 4 metro cities including New Delhi, Chennai, Mumbai and Kolkata.

    When can you approach NBFC ombudsman?

    In case the NBFC customer complaints on any of the following grounds then the ombudsman will need to redress grievance.

    The complaint can be raised for any of the following case:

    - If the NBFC company does not complies with any of the RBI direction which can be in relation to anything which is within the scope of its operations.

    - Non-presentation or inordinate delay in respect of the presentation of post dated cheques

    - Non-payment or inordinate delay in respect of interest payment on deposits

    - Non-repayment or inordinate delay in relation to repayment of deposits

    - Levying charges without prior notice to the customer

    - Not providing NOC or releasing original securities kept as collateral with the NBFC firm.

    Here it is to be noted that not all NBFCs come under the scheme and those with assets worth over one billion form the part of the scheme.


    Read more about: nbfc ombudsman nbfc rbi
    Story first published: Saturday, February 24, 2018, 15:37 [IST]
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