Ombudsman For Non-Banking Financial Companies (NBFCs) in India

Reserve Bank of India (RBI) on February 23, 2018 launched 'Ombudsman Scheme' for non-banking financial companies (NBFC) for redressal of complaints against them.

"The scheme will provide a cost-free and expeditious complaint redressal mechanism relating to deficiency in the services by NBFCs covered under the Scheme," the central bank said.

The offices of the NBFC ombudsmen will function at four metro centres - Chennai, Kolkata, Mumbai and New Delhi.

They will handle complaints of customers in the respective zones.

"To begin with, the Scheme will cover all deposit-taking NBFCs. Based on the experience gained, the RBI would extend the scheme to cover NBFCs having asset size of Rs 100 crore and above with customer interface," the RBI said...

What To Do If Banking Ombudsman Rejects Your Complaint

In this article I will use common language but if you are interested in what the Banking Ombudsman Scheme exactly says, you may read clauses 8, 9, and 13 of the scheme here: Now what does it mean by rejection of a complaint by the Banking Ombudsman in India. It means that the Banking Ombudsman has closed the complaint in their record and is not going to taken any action on it going forward. The complainant is so advised after closing the complaint that his/her complaint has been closed by rejection. The 'applicable clause' of rejection as per the scheme is mentioned in the closure letter and the complainant is also informed whether or not an appeal against the rejection is possible. If you just noticed, I have put the words 'applicable clause' in quotes. This is because which clause applies to the rejection is a rather subjective matter which is sometimes decided regardless of the what the Banking Ombu…

You Can Legally Appeal Against Banking Ombudsman's Decision Rejecting Your Complaint

In this page you will read about your right to appeal against a decision of Banking Ombudsman and also about how your right to appeal is being illegally taken away. Please read the article in full. The Banking Ombudsman Scheme 2006 (updated in July 2017 and currently valid) allows you to appeal against a decision rejecting your complaint under some provisions of the clause 13 of the scheme. Let us first see what clause 13 (rejection of complaints) has to say:

"The Banking Ombudsman may reject a complaint at any stage if it appears to him that the complaint made is;


(1) The Banking Ombudsman may reject a complaint at any stage if it appears to him that the complaint made is;

a. not on the grounds of complaint referred to in clause 8; or

b. otherwise not in accordance with Sub Clause (3) of clause 9; or

c. beyond the pecuniary jurisdiction of Banking Ombudsman prescribed under clause 12 (5) and 12 (6): or

d. requiring consideration of elaborate docum…

What To Do if Banking Ombudsman Delays Resolution of Your Complaint

Elsewhere in this blog I have written that in India, it is not easy to get justice from a Banking Ombudsman. One major area of concern here is an undue delay in the resolution of complaints in the offices of Banking Ombudsman. The funny thing is that the delay is caused most of the times by the concerned banks who just do not bother to respond to Banking Ombudsman's calls for their replies. There are no systemic problem causing this delay in the banks' response to complaints. Actually the nodal officers of all the banks have live connectivity with the complaint management software that is used by Banking Ombudsman. That means, the nodal officers of banks in India are free to access / download complaints from the Banking Ombudsman site and thereafter to upload their replies / supporting documents, etc. at any time. Still, there are delays because customer service is not an area of priority for the banks. The Banking Ombudsman Scheme, 2006 requires a complaint received in an Of…

RBI Notification of February 3, 2009 Amending the Banking Ombudsman Scheme 2006

Subsequent to the amendments brought in to the Banking Ombudsman Scheme 2006 vide its notification dated May 24, 2007, Reserve bank of India further amended the Scheme via its notification officially numbered Ref.CSD.BOS.No.4736 /13.01.01/2008-09 and dated February 3, 2009 (Please read the May 24, 2007 amendments here). This 2009 notification contained amendments, in addition to others, to paragraph 13 relating to rejection of complaints by Banking Ombudsman and paragraph 14 that deals with appeals by aggrieved bank customers against rejection of their complaint by Banking Ombudsman. This page contains the complete text of the RBI notification and its Annex dated February 3, 2009, issued under the name and signature of Ms. Usha Thorat, the then Deputy Governor of Reserve Bank of India:

"In exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949 (10 of 1949) and in partial modification of its Notification Ref.RPCD.BOS.No.441/13.01.01/2005-06 dated Dece…