Dear All,
RBI vide circular dated 15th November 2021 has directed NBFCs registered with RBI to appoint Internal Ombudsman (IO).
Highlights of the Circular:
The circular is applicable to following NBFCs:
a) NBFCs-D with 10 or more branches, and
b) NBFCs-ND with asset size of Rs 5,000 crore and above (excluding NBFCs given in para 3 of this direction)
Also certain categories of NBFCs are excluded from the appointment of IO such as Stand-alone Primary Dealer; Non-Banking Financial Company – Infrastructure Finance Company (NBFC-IFC); Core Investment Company (CIC), etc.
A timeline of six months is given to the NBFC s for complying with the circular.
The tenure of appointment of IO shall be minimum 3 years to maximum 5 years with the requisite qualities.
The circular very well defines the role and responsibilities of IO.
The procedure for appointment of IO has been clearly specified in the circular. Also the NBFC is required to disclose to the RBI the details of the complaints on quarterly basis.
Please refer to the attached circular for detailed information about the appointment of IO.
The circular can also be read at : https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12195&Mode=0
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