RBI to introduce ombudsman scheme for NBFCs to bolster complaint redressal

In order to improve complaint redressal in finance companies, the Reserve Bank of India (RBI) will introduce the Internal Ombudsman Scheme (IOS) for NBFCs having a higher customer interface.

Detailed instructions in this regard (IOS scheme) will be issued separately, the RBI said in a statement on developmental and regulatory policies.

RBI said the IOS for NBFCs will be on the lines of IOS for banks and non-bank payment system participants. The finance companies will appoint an ombudsman in addition to the grievance redressal mechanism to examine complaints about deficiency in service.

The finance companies have played an important role