RBI extends Ombudsman scheme to NBFC-NDs

RBI extends Ombudsman scheme to NBFC-NDs

Agency News

Mumbai, Apr 26 : The Reserve Bank of India (RBI) on Friday 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 more.

However, the 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 ombudsman scheme was earlier operationalized for deposit-accepting NBFCs. Now, it has been extended to include some other categories of NBFCs.

The scheme -- launched on February 23, 2018 for redressal of complaints against NBFCs registered with RBI -- provides a cost-free and expeditious complaint redressal mechanism relating to deficiency in the services by NBFCs covered under the scheme, RBI said in a statement.

The scheme also provides for an Appellate mechanism under which the complainant or NBFC has the option to appeal against the decision of the Ombudsman before the appellate authority, it added. (UNI)