RBI extends ombudsman scheme to non-deposit taking NBFCs

MUMBAI: In a move to improve customer confidence in NBFC lending routes, the Reserve Bank of India has announced to extend the ambit of Ombudsman scheme for NBFCs to all eligible non-deposit taking NBFCs as well, effective Friday. The scheme which lays down rules for redressal mechanism in cases of customer complaints was earlier applicable only to deposit-taking NBFCs.

“All Non-Deposit Taking Non-Banking Financial Companies having customer interface, with assets size of Rupees 100 crore or above…will come within the ambit, and shall comply with the provisions of the Ombudsman Scheme for Non-Banking Financial Companies,” RBI said in a regulatory circular.

However, the scheme still excludes various NBFC groups such as Infrastructure Finance Companies (NBFC-IFC), Core Investment Company (CIC), Infrastructure Debt Fund-Non-Banking Financial Company (IDF-NBFC) and also NBFCs under liquidation.


There are currently four NBFC ombudsman offices in Chennai, Kolkata, Mumbai and Delhi where customer complaints from across the country are monitored and resolved.

As per the scheme, a customer can register complaints against an NBFC under 13 grounds such as non-observance of fair practices code, non-payment of deposits or interest by the NBFC, failure to provide adequate security documents or requisite notice, failure to ensure transparency, among others.

The apex regulators earlier this month during MPC had announced their intent to extend the coverage of the ombudsman scheme to all “eligible NBFCs” by the end of the month after reviewing process.