{"id":17366,"date":"2020-10-05T12:43:51","date_gmt":"2020-10-05T07:13:51","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=17366"},"modified":"2025-01-14T18:36:34","modified_gmt":"2025-01-14T13:06:34","slug":"ombudsman-scheme-for-nbfcs","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/ombudsman-scheme-for-nbfcs\/","title":{"rendered":"Ombudsman Scheme for NBFCs \u2013 A Complete Overview"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Ombudsman Scheme was introduced by the Reserve Bank of India on 4-April-2019 to curb the complexities related to the complaint redressal mechanism for specific services offered by NBFC. The scheme primarily encompasses the non-banking finance companies (NBFCs), and it is released under Section 45 L of the RBI Act, 1934. The ombudsman scheme for NBFCs is the apex level mechanism of resolving the issues of customers of NBFCs. This article will manifest some facts regarding the Ombudsman Scheme for NBFCs.\u00a0 <\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" width=\"576\" height=\"491\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/10\/image-14.png\" alt=\"Roles of Ombudsman\" class=\"wp-image-17367\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/10\/image-14.png 576w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/10\/image-14-300x256.png 300w\" sizes=\"(max-width: 576px) 100vw, 576px\" \/><\/figure><\/div>\n\n\n<h2 class=\"wp-block-heading\">Who is the Ombudsman Scheme?&nbsp;<\/h2>\n\n\n\n<p>Ombudsman is a legal term that is referred to as public advocates which take charged to represent the interest of the public by probing complaints of maladministration. The general duties performed by the <strong>ombudsman<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Ombudsman\"><strong>[1]<\/strong><\/a><\/sup> include:-<\/p>\n\n\n\n<ul>\n<li>Investigation of complaints regarding the service provider&nbsp;<\/li>\n\n\n\n<li>Provides reasonable solutions to the applicant\u2019s complaints through conciliations.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>At present, there are four Ombudsmen have been appointed by the\nReserve Bank with their offices located in New Delhi, Kolkata, Mumbai, and\nChennai.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Ombudsman Scheme for NBFCs<\/h2>\n\n\n\n<p>The scheme primarily covers the NBFCs having an asset size of 1\nbillion rupees and reserves the right to accept deposits. Such entities are\ndefined in Section 45-I (f) of the RBI Act, 1934.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Ground for Grievances (Ombudsman Scheme for NBFCs)<\/h3>\n\n\n\n<p><strong><em>Following are the list of grievances that a complainant can address to the Ombudsman regarding the maladministration of NBFC.<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>Non-payment or unusual delay related to the payment of interest\non deposits;<\/li>\n\n\n\n<li>Non-adherence to directives issued by RBI, if any, applicable to\nthe interest rate on deposits;<\/li>\n\n\n\n<li>Non-repayment or unusual delay related to the repayment of\ndeposits;<\/li>\n\n\n\n<li>Non-presentation or unusual delay related to the post-dated\ncheques furnished by the customer;<\/li>\n\n\n\n<li>Failure to render the writ statement regarding the loan\nsanctioned in addition to T&amp;C regarding annualized interest rate and\napplication method thereof;&nbsp;<\/li>\n\n\n\n<li>Failure to render a sanction letter or adequate notice in the\nlanguage understood by the borrower;&nbsp;<\/li>\n\n\n\n<li>Failure or unusual delay in furnishing the documents or\nsecurities to the borrower on repayment of entire dues;&nbsp;<\/li>\n\n\n\n<li>Levying of charges without intimating the customers through writ\nnotification.&nbsp;<\/li>\n\n\n\n<li>Failure to impart transparency in the loan agreement regarding\n(i) notice period before the acquisition of security; (ii) scenarios that\nsupport the forgo of the notice period;(iii) the method for acquisition of the\nsecurity; (iii) the procedure of providing relaxation to the borrower regarding\nthe repayment of a loan before the auction of the security; (iv) provisions for\nrendering repossession to the borrower; (vi) the procedure related to the sale\nof the security.&nbsp;<\/li>\n\n\n\n<li>Non-fulfilment of directives issued by RBI to the NBFCs;<\/li>\n\n\n\n<li>Non-adherence to guidelines issued by RBI regarding the Fair\nPractices Code for NBFCs.<\/li>\n<\/ul>\n\n\n\n<p>The Ombudsman might confront such other matters as provided by\nthe RBI from time to time. Upon receiving the complaints, the Ombudsman strives\nto promote the resolution of the dispute through mediation via an agreement\nbetween concerned parties. If the complainant accepted the term of settlement\noffered by the NBFC as a whole, then Ombudsman will issue an order in pursuant to\nthe term of settlement which becomes binding on the complainant as well as\nNBFC. <\/p>\n\n\n\n<p>If the NBFC is found to comply with extant norms and\ncommunicated the same to the complainant via appropriate means and the\ncomplainant register, no issues regarding the matter than the Ombudsman will\npass the order regarding the closure of the complaints.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Grounds for the Rejection of the Complaints at any Stage&nbsp;<\/h3>\n\n\n\n<p>As per section 13 of the scheme, NBFC Ombudsman may reject\ncomplaints on the following grounds:&nbsp;<\/p>\n\n\n\n<ul>\n<li>The complaint made is not in the pursuant to a complaint\nreferred to in clause 8 of the Scheme; or<\/li>\n\n\n\n<li>The compensation demanded by the complainant is beyond the scope\nof the pecuniary limit mentioned under the scheme.&nbsp;<\/li>\n\n\n\n<li>The complaint was made on false grounds.<\/li>\n\n\n\n<li>The complaint made does not have any association with the\ncomplainant with appropriate diligence required to be conducted.<\/li>\n\n\n\n<li>The complaint made needs consideration of extensive documents\nand oral proof and the proceeding&nbsp;<\/li>\n\n\n\n<li>In the opinion of the NBFC Ombudsman no inconvenience or damage\ncaused to the complainant.&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Grounds for the non-acceptance of complaint&nbsp;<\/h3>\n\n\n\n<p><strong><em>NBFC Ombudsman may not accept the complaint under the following circumstances:&nbsp;<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>If the complaint is lodged against the NBFC which is not covered\nunder the scheme.&nbsp;<\/li>\n\n\n\n<li>If the complaint is not communicated with the NBFC against which\nthe dispute was aroused.&nbsp;<\/li>\n\n\n\n<li>If the complaint lodged is not in the pursuant to complaint\navailable under clause 8 of the scheme.&nbsp;<\/li>\n\n\n\n<li>If there is a significant delay in lodging the compliant w.r.t\nthe date of receipt of reply from the NBFC.&nbsp;<\/li>\n\n\n\n<li>If the complainant fails to reply to Ombudsman within one year\nand one month from the date of registering the complaint to the NBFC.&nbsp;<\/li>\n\n\n\n<li>If the complaint has already been resolved at the consumer court\nor court of law.&nbsp;<\/li>\n\n\n\n<li>If the complaint has already been addressed via the office of\nthe NBFC Ombudsman.&nbsp;<\/li>\n\n\n\n<li>If the complaint seems to be superficial or doesn\u2019t hold any\nsignificant value.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion&nbsp;<\/h2>\n\n\n\n<p>The complainant can lodge a written complaint with the NBFC Ombudsman and send it to their concerned office via fax, post, or hand delivery. One can also use the email to serve the same purpose. To ease out the filing process, RBI has uploaded a complaint form on its official website, though it is not compulsory to use this format. Feel free to connect with <a href=\"https:\/\/corpbiz.io\/\"><strong>Corpbiz<\/strong><\/a>&#8216;s professional just in case if you need some help on <strong><a href=\"https:\/\/corpbiz.io\/nbfc-registration\">NBFC registration<\/a><\/strong> or Ombudsman Scheme for NBFCs; we will be glad to assist you. We offer string of the cutting-edge services in the field of licensing, compliances, and government registration. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/regulations-governing-nbfcs-in-india-a-complete-overview\/\">\nRegulations governing NBFCs in India: A Complete Overview\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ombudsman Scheme was introduced by the Reserve Bank of India on 4-April-2019 to curb the complexities related to the complaint redressal mechanism for specific services offered by NBFC. The scheme primarily encompasses the non-banking finance companies (NBFCs), and it is released under Section 45 L of the RBI Act, 1934. The ombudsman scheme for NBFCs [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":17369,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[91],"tags":[1067],"acf":{"service_id":"8"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":12471,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/17366"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=17366"}],"version-history":[{"count":10,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/17366\/revisions"}],"predecessor-version":[{"id":68313,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/17366\/revisions\/68313"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/17369"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=17366"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=17366"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=17366"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}