The government has set up a task force to look at creating a financial redressal agency (FRA), which has been envisaged as a nationwide machinery to become a one-stop shop where consumers can make complaints against all financial firms. The FRA was first mooted by the Financial Sector Legislative Reforms Commission (FSLRC) in its report given in March 2013.
The task force will be headed by Dhirendra Swarup, a former expenditure secretary in the finance ministry and the ex-chairman of the Pension Fund Regulatory and Development Authority. He was also a member of FSLRC.
The 10-member task force will review the international best practices in consumer grievance redressals and dispute mechanisms, with a focus on the financial sector. It will also review the current practises of financial consumer redress in India.
Among other responsibilities, it will also help the government in procuring the services of outside consultants to operationalise the FRA, and will help in developing the organisation and human resources design, administrative plan, physical infrastructure, use of funds, and business model, among others.
Apart from Swarup, the task force will consist of the principal economic advisor of the department of economic affairs, representatives from the Reserve Bank of India, Securities and Exchange Board of India, Insurance Regulatory and Development Authority, PFRDA, and independent experts.
