The RBI said that the increased significance, strength and reach of NBFCs across the country has necessitated having in place better customer experience including grievance redress practices
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NEW DELHI: The Reserve Bank of India on Friday said it has decided to introduce the Internal Ombudsman Scheme for certain categories of non-banking financial companies (NBFCs) having higher customer interface to strengthen the internal grievance redress mechanism of NBFCs
NBFCs have played an important role in extending finance to niche sectors such as MSME, microfinance, housing, vehicle finance and have effectively complemented banks' efforts through last mile financial intermediation. Many NBFCs have also successfully adopted digital modes to support delivery of financial products and services to a wide spectrum of customers, the central bank said in statement following the monetary policy review.
The increased significance, strength and reach of NBFCs across the country has necessitated having in place better customer experience including grievance redress practices, it said.
On Friday, the central bank's monetary policy committee (MPC) kept repo rate unchanged for the eighth consecutive time, and maintained accommodative stance.
The MPC voted 5-1 to retain accommodative stance for as long as required to revive and sustain growth on a durable basis, while keeping inflation within target.
Over the last few years, RBI has initiated various measures for consumer protection and grievance redress for customers of NBFCs, which include requiring NBFCs to appoint Nodal Officers for grievance redress (2013) and the launch of the Ombudsman Scheme for NBFCs (2018).
"The IOS for NBFCs, which will be on the lines of IOS for banks and non-bank payment system participants, will require select NBFCs to appoint an Internal Ombudsman (IO) at the top of their internal grievance redress mechanism to examine customer complaints which are in the nature of deficiency in service and are partly or wholly rejected by the NBFCs. Detailed instructions in this regard will be issued separately," as per the statement.