RBI expands ombudsman scheme to non-deposit taking NBFCs

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For speedy redressal of complaints against dearth of services regarding loans and other matters, the Reserve Bank of India (RBI) today expanded the coverage of ombudsman scheme to non-deposit taking Non-Banking Financial Companies (NBFCs) with an asset size of Rs 100 crore or higher.

This move will help in offering a cost-free and prompt complaint redressal mechanism pertaining to deficiency in the services offered by NBFCs.

Earlier, the ombudsman scheme was operationalised in deposit-accepting NBFCs. It has now been extended to include other new categories of NBFCs.

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 the categories that are now excluded from the ambit of the Scheme.

The scheme also ensures an Appellate mechanism under which the complainant / NBFC gets the option to appeal against the decision of the Ombudsman before the appellate authority.

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