RBI expands ombudsman scheme to non-deposit taking NBFCs


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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