OMBUDSMAN AND NBFC ( Non-banking Financial Companies.)

OMBUDSMAN AND NBFC (Non-banking Financial Companies):

CONTAXT:- The reserve Bank of India (RBI) has extended the Coverage of Ombudsman Scheme for Non-banking Financial Companies (NBFC) , 2018 to eligible Non deposit Taking Non Banking Financial Companies (NBFC-NDs).

DETAIL:- 

# The coverage will be extended to Non-Deposit Talking Non-banking Financial Companies having Asset Size of Rs 100 or Above with Customer interface.

# However , Non Banking Financial Company Infrastructure Finance company (NBFC-IFC) , core Investment company (CIC) , Infrastructure Debt Fund-Non-Banking Financial Company (IDF-NBFC) and NBFC Under liquidation are excluded from the ambit of the Schemes.

ABOUT OMBUDSMAN:- 

# The Scheme was launched on February 23, 2018 for redressal of Complaints Against NBFC's Registered With the RBI Under Section 45-1A of the RBI Act . 1934 and Covered all Deposite Accepting NBFC's to begin with .

# It provide a cost-free and expenditures complaint redressal mechanism relating to deficiency in the services by NBFC's Covered Under the Scheme.

# The offices of the NBFC OMBUDSMAN are Functioning in Four Metro Centres- Chennai , Kolkata , Mumbai , and New Delhi - and Handle Complaint's of Customer in the respective Zones.

# The Scheme also provide for an appellate mechanism under which the Complaint / NBFC has the option to appeal against the decision of the Ombudsman before the appellate Authority.

ABOUT NBFC:-

# A NBFC is a Company registered Under the Companies Act , 1956 Engaged in the business of loan and Advances , acquisition of Shares/ Stock/ Bond/ Debenture/ Securities.

# It doesn't include any Institution Whose principal Business in That of Agriculture Activity , Industrial Activity , Puschose or Scale of any Goods (Other than Securities) or Providing any Services and Sale/Purchase/Construction of immovable properties.