Bundles of Indian twenty rupee banknotes (Photographer: Dhiraj Singh/Bloomberg) 

RBI Launches Ombudsman Scheme For NBFCs

The Reserve Bank of India launched an Ombudsman Scheme for redressal of complaints against the non-banking financial companies.

The scheme will provide a cost-free and speedy mechanism for addressing complaints relating to deficiencies in the services of NBFCs, the RBI said in a statement today.

The central bank had announced the scheme on Feb. 9 post the monetary policy committee meeting.

The scheme will initially cover all deposit-taking NBFCs, and will subsequently include companies with asset size of Rs 100 crore and above with “customer interface.”

Additionally, the mechanism will provide an option to the NBFC in question to appeal against the decision of the Ombudsman before the appellate authority.

The NBFC Ombudsman will have offices in four cities: New Delhi, Mumbai, Chennai, and Kolkata, the statement added. They will handle complaints of customers in the respective zones.