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Way For NBFC Customers To Get Their Complaints Addressed

Against non-banking finance companies (NBFCs), rising complaints regarding deficiency in services has provoked the Reserve Bank of India to examine the possibility of coming up with an NBFC-specific ‘ombudsman scheme’ similar with the one which has been operational for banks in the last two decades. Under the scheme it will be predicted that customers could lodge complaints against NBFCs for levying charges without adequate prior notice, non-observance of RBI directives on interest rates and engagement of recovery agents, delays in sanction, disbursement or non-observance of prescribed time schedule for disposal of loan applications.

Currently there is no administration for hearing customer complaints against the non-banking financial companies (NBFCs). Reserve Bank of India (RBI) is planning to setup ombudsman for NBFCs where customers can get their grievances addressed.

Here is the way to file complaint against NBFC, before that firstly we will understand what NBFC is?

As per The Reserve Bank of India, Non-Banking Financial Company (NBFC) is a type of company engaged in the business of loans and advances, shares, stocks, bonds, debentures, securities, leasing, hire-purchase, insurance, or chit business. RBI regulates the registration of NBFC. Its operations are regulated on the basis of the directions issued by RBI. For NBFC registration minimum net owned fund of Rs. 2 Crore is required. Only after obtaining certificate of registration from RBI, NBFC can commence its operations. Apart from the institution whose principal business is related to agriculture, industrial activity, purchase or sale of any goods, or related to selling, buying or building immovable property is not termed as an NBFC.

In India there are some well-known NBFCs such as Housing Development Finance Corporation, Reliance Capital, LIC Housing Finance, Rural Electrification Corporation, Cholamandalam Investment & Finance Co. Ltd, Bajaj Finance Ltd, Bharat Financial Inclusion Ltd, Equitas Holdings Ltd and Ujjivan Financial Services Ltd.

Complaint Redressal

In India, different types of NBFC offer different type of services and products. For NBFCs RBI has made it mandatory to have a grievance redressal officer and it is also mandatory to display name and contact details of officer in the premises of the NBFCs. To file a complaint,one can approach the grievance redressal officer of the NBFC.

In case non satisfaction by the settlement offered by the grievance redressal officer then one can approach the nearest office of the RBI. On the premises of NBFCs,details of the respective RBI offices have to be mandatorily displayed.

In case of grievance regarding a credit card operated by an NBFC, then there is small change in the process. Typically NBFCs offer credits cards in association with banks mainly in case when the NBFC is a subsidiary of a bank. In case after approaching NBFC, complaint is not resolved satisfactorily within 30 days of filing complaint then one has to approach ‘banking ombudsman’ of the concerned bank. From the website of the banks contact details of banking ombudsman can be found.

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