RBI to set up Separate ombudsman for NBFCs

Reserve Bank of India (RBI) has made an announcement to set up ombudsman for NBFCs to address customer grievances in non-banking finance companies. The rules regarding this will be made by the end of February this month. RBI will first start the facility with NBFCs that take deposits and will soon increase the coverage by adding NBFCs with asset size of Rs 100 crore.

What is Banking ombudsman?

Banking ombudsman is a quasi judicial authority whose responsibilities are to handle and resolve complaints of customers regarding certain services provided by the banks. The scheme to have banking ombudsman has been in function since 1995.

Till 1995, there are approximately 20 banking ombudsmen in India, they have offices mainly in the state capitals. Anyone who has some issues with the any service of bank can file complaint with the ombudsman of his or her respective area. There are some rules to file a complaint with ombudsman.

Complainant has to first contact the concerned bank to file his complaint. He or she can contact ombudsman in following conditions:

  1. The complaining person has not received a reply from the bank within one month after the bank concerned has received one’s complaint.
  2. The concerned bank rejects the complaint.
  3. If the person who has complained is not satisfied with the repose or the way the complaint was addressed by the bank.

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