Ombudsman Scheme

Ombudsman Scheme for Non-Banking Financial Companies 2018:
Salient Features

Scheme covers customers of
  • All 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 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?
  • Written representation to NBFC concerned

  • At the end of one month

  • If reply is not received from NBFC or customer remain dissatisfied with the reply of NBFC

  • If customer has not approached any forum

  • File a complaint with NBFC Ombudsman (not later than one year after the reply from NBFC)

How does Ombudsman take decision?
  • Proceedings before Ombudsman are summary in nature
  • Promotes settlement through conciliation    If not reached, can issue Award/Order
Can a customer appeal, if not satisfied with decision of Ombudsman?
  • Yes, If Ombudsman’s decision is appealable     Appellate Authority: Deputy Governor, RBI
  • This is an Alternate Dispute Resolution mechanism
  • Customer is at liberty to approach any other court/forum/authority for the redressal at any stage

Please Refer to Ombudsman Scheme for Non-Banking Financial Companies, 2018 for further details