POLICY DISCLOSURE
Ombudsman Salient Features
Ombudsman Scheme for Non-Banking Financial Companies: Salient features setting out customer eligibility, grounds for complaints, resolution process, and appeal mechanism.
SCHEME COVERS
CUSTOMERS OF
CUSTOMERS OF
The Ombudsman Scheme covers customers of:
• All deposit taking NBFCs.
• NBFCs with assets size >= Rs. 100 crore + customer interface.
• (Excluding: Infrastructure Finance Companies, Core Investment Companies, Infrastructure Debt Fund and NBFCs under liquidation).
GROUNDS FOR FILING
A COMPLAINT
A COMPLAINT
Grounds for filing a complaint by a customer:
• Interest/Deposit not paid OR paid with delay
• Cheque not presented OR done with delay
• Not conveyed the amount of loan sanctioned, terms & conditions, annualised rate of interest, etc.
• Notice not provided for changes in agreement, levy of charges
• Failure to ensure transparency in contract/loan agreement
• Failure/ Delay in releasing securities/ documents
• Failure to provide legally enforceable built-in repossession in contract/ loan agreement
• RBI directives not followed by NBFC
• Guidelines on Fair Practices Code not followed
HOW CAN A CUSTOMER
FILE COMPLAINT?
FILE COMPLAINT?
A. Written representation to NBFC concerned
First make a written complaint directly to the concerned NBFC.
B. At the end of one month
Wait for a period of 30 days (one month) for the NBFC's response.
C. Eligibility to file complaint
If reply is not received from NBFC or customer remain dissatisfied with the reply of NBFC (If customer has not approached any forum).
D. File a complaint with NBFC Ombudsman
Lodge the complaint with the NBFC Ombudsman (not later than one year after the reply from NBFC).
HOW DOES OMBUDSMAN
TAKE DECISION?
TAKE DECISION?
• Proceedings before Ombudsman are summary in nature.
• Promotes settlement through conciliation → If not reached, can issue Award/Order.
APPEAL MECHANISM
Can a customer appeal, if not satisfied with decision of Ombudsman?
Yes, If Ombudsman’s decision is appealable → Appellate Authority: Deputy Governor, RBI.
NOTE & ADR
• This is an Alternate Dispute Resolution mechanism.
• Customer is at liberty to approach any other court/forum/authority for the redressal at any stage.
• Refer to www.rbi.org.in for further details of the Scheme.
IMPORTANT DOCUMENTS