RBI extends ombudsman scheme to non-deposit taking NBFCs.

• It will help provide expeditious complaint redressal mechanism to customers.

• The ombudsman scheme was earlier operationalized for deposit-accepting NBFCs.

For expeditious redressal of complaints against deficiency in services concerning loans and other matters, the Reserve Bank of India (RBI) today extended the coverage of ombudsman scheme to non-deposit taking non-banking financial companies (NBFCs) having asset size of ₹100 crore or higher. It will help provide a cost-free and expeditious complaint redressal mechanism relating to deficiency in the services by NBFCs covered under 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 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 scheme also provides for an Appellate mechanism under which the complainant / NBFC has the option to appeal against the decision of the Ombudsman before the appellate authority. (Source: Livemint)