In order to enhance complaint redressal in finance corporations, the Reserve Bank of India (RBI) will introduce the Internal Ombudsman Scheme (IOS) for NBFCs having a better buyer interface.
Detailed directions on this regard (IOS scheme) will likely be issued individually, the RBI stated in an announcement on developmental and regulatory insurance policies.
RBI stated the IOS for NBFCs will likely be on the traces of IOS for banks and non-bank cost system contributors. The finance corporations will appoint an ombudsman as well as to the grievance redressal mechanism to look at complaints about deficiency in service.
The finance corporations have performed an vital position in extending finance to area of interest sectors similar to MSME, microfinance, housing, car finance. They have successfully complemented the efforts of banks by means of final mile monetary intermediation.
The elevated significance, energy and attain of NBFCs throughout the nation has necessitated higher buyer expertise together with grievance redress practices.
Over the previous couple of years, RBI has taken steps for client safety and grievance redressal for prospects. Some of
RBI’s initiatives for buyer care embrace requiring NBFCs to appoint nodal officers for grievance redressal (2013) and the launch of the ombudsman scheme for NBFCs (2018).
Several NBFCs have additionally efficiently adopted the digital mode to assist the supply of their monetary services and products to a large spectrum of consumers, it added.