New Delhi, Feb 24: India's central bank, Reserve Bank of India (RBI) has introduced the Ombudsman Scheme for Non-Banking Financial Companies (NBFCs). This is in accordance with the Monetary Policy Statement issued by RBI on February 7, 2018.
The system would present an expense-free and prompt grievance redressal system correlating to the lack of the assistance by NBFCs.
The scheme has been proposed with an aim to enable to derive a judgement of complaints without any expense.
The services of the NBFC Ombudsmen will be available at four metro hubs, specifically, Chennai, Kolkata, Mumbai and New Delhi. These centres would handle grievances of customers in their particular areas.
The system would cover all investment-taking NBFCs. Based on its expertise, the Reserve Bank of India will expand the plan aiming to include NBFCs having an asset size of Rs. one billion and above with customer participation.
Nevertheless, 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 not included in the scheme.
In a statement issued on Friday, the RBi has stated that the scheme shall come into force with immediate effect.