The Reserve Bank of India has issued the Reserve Bank of India (Non-Banking Financial Companies – Internal Ombudsman) Directions, 2026 to enhance consumer protection by strengthening grievance redress mechanisms in eligible NBFCs. The Directions seek to promote fairness, transparency, and accountability in complaint handling.
Applicability
The Directions apply to deposit-taking NBFCs with ten or more branches and non-deposit-taking NBFCs having asset size of ₹5,000 crore and above with public customer interface, as on March 31, 2025. NBFCs meeting the criteria subsequently will be required to comply within six months. The framework does not apply to NBFCs under CIRP, liquidation, or RBI directions.
Amendments
The Directions replace the Internal Ombudsman framework under the 2023 Master Direction for eligible NBFCs and significantly strengthen the complaint redress process. All partially resolved and rejected complaints are now required to be automatically escalated to the Internal Ombudsman for independent review. The framework introduces the role of Deputy Internal Ombudsman, enhances Board oversight and reporting obligations, and strengthens supervisory review by the Reserve Bank.
Link – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13274&Mode=0
