RBI releases ombudsman scheme for NBFCs

RBI releases ombudsman scheme for NBFCs

An RBI officer, not below the rank of general manager, will be appointed by the regulator as the ombudsman with territorial jurisdiction being specified by RBI

The Reserve Bank of India (RBI) on Friday issued an ombudsman scheme for non-banking finance companies (NBFCs), offering a grievance redressal mechanism for their customers. The scheme will come into effect immediately, the regulator said in a press release.

“In exercise of the powers conferred by Section 45L of the Reserve Bank of India Act, 1934, the RBI being satisfied that for the purpose of enabling it to promote conducive credit culture among the NBFCs and to regulate the credit system of the country to its advantage, it is necessary to provide for a system of ombudsman for redressal of complaints against deficiency in services concerning deposits, loans and advances and other specified matters, hereby directs that the NBFCs... should comply with the provisions of the Ombudsman Scheme for Non-Banking Financial Companies, 2018,” the notification stated.

An officer at the RBI not below the rank of general manager will be appointed by the regulator as the ombudsman with territorial jurisdiction being specified by the central bank. The tenure of each ombudsman cannot exceed three years and can be reduced by the regulator if needed.

Any customer or person can file a compliant with the ombudsman on various grounds like non-payment or inordinate delay in payment of interest, non-repayment of deposits, lack of transparency in loan agreement, non-compliance with RBI directives on fair practices code for NBFCs, levying of charges without sufficient notice to the customers and failure or delay in returning the securities documents despite repayment of dues among others.

If a complaint is not settled by agreement within a specified period as the ombudsman may allow the parties, he may, after affording the parties a “reasonable opportunity to present their case, either in writing or in a meeting, pass an award either allowing or rejecting the complaint”.

Only written complaints or those in electronic format will be accepted. The ombudsman may also award compensation not exceeding one hundred thousand rupees to the complainant, taking into account the loss of time, expenses incurred, harassment and mental anguish suffered by the complainant.

The NBFC shall, unless it has preferred an appeal, within one month from the date of receipt by it of the acceptance in writing of the award by the complainant under sub-clause (8), comply with the award and intimate compliance to the complainant and the ombudsman.

The ombudsman will be required to send a report to the RBI governor annually on 30 June containing general review of the activities of his office during the preceding financial year and other information required by the central bank.The scheme also allows a person to appeal in case of dissatisfaction with any award by the ombudsman.

“Any person aggrieved by an award under Clause 12 allowing the complaint or rejecting the complaint for the reasons referred to in sub clauses (c) to (f) of clause 13, may within 30 days of the date of receipt of communication of award or rejection of complaint, prefer an appeal before the appellate authority,” the scheme stated

The Mint, New Delhi, 24th February 2018

Data storage norm splits digital payments industry

Data storage norm splits digital payments industry India’s nascent digital payment industry could be thrown into disarray due to the demand by the Reserve Bank of India (RBI) that all user data be stored within the country, fears an industry grouping, which has termed the decision as “heavy-handed”, even as others, including the country’s largest digital payment provider Paytm, have hailed the move. In a bid to narrow the growing schism, the industry is planning to send a formal representation to the regulator highlighting its concerns, a top official told ET. “We are trying to build a consensus on the issue," said the person adding that the representation to the central bank will be ready this week. RBI on April 6, mandated all payment companies—global and local—to set up data storage facilities within India by October. The stringent six-month deadline has attracted the ire of several sections of the industry that fear it will lead to a disruption of wel...

Offer’s for all of you

Great Bumper Dhamaka Offer’s for all of you... It's Time to see your Business Online, WebeCreator Offer Website Designing with domain & Email @ nominal charges. For a year For More information visit us http://goo.gl/KlpppF call on 9890151261/9773197533 drop a mail to sales@webecreator.com

Sebi to finalise options in commodities today

The Commodity Derivatives Advisory Committee of the Securities and Exchange Board of India ( Sebi) will meet on Friday with senior officials of the latter, to give a final shape to the rules on options trading in commodity futures, beside revising the warehousing norms to ensure good delivery on settlement. The decision taken, after discussing with the advisory committee, will be placed before the regulator’s board, to finalise the regulations. According to knowledgeable sources, three commodities in each segment, agricultural and non- agricultural, have been proposed for introducing options. It appears commodities from the soya and guar segments are preferred in the former. From the non- agri segment, it is likely that gold, silver and crude oil will be finalised. All these These have better liquidity and both the National Commodity and Derivatives Exchange and the Multi Commodity Exchange, respectively, will be able to introduce the options. In the equity segments, options ar...

CA Online

Search This Blog