RBI introduces Internal Ombudsman mechanism for select NBFCs
- The Reserve Bank of India has announced to introduce the Internal Ombudsman mechanism for following two types of Non-Banking Financial Companies (NBFCs):
- Deposit-taking NBFCs (NBFCs-D) with 10 or more branches and
- Non-Deposit taking NBFCs (NBFCs-ND) with asset size of Rs.5,000 crore and above having public customer interface
- Consequently, these two categories of NBFCs will have to appoint Internal Ombudsman (IO). The internal Ombudsman will be responsible for handling the public grievance at the entity level before the grievance is escalated to Ombudsman at RBI.
- RBI has given a timeline of six months to the NBFCs for the appointment of the Internal Ombudsman.
Points to remember:
- Which category of NBFCs will have to appoint Internal Ombudsman?
Source: RBI