Ombudsman Scheme for Non-Banking Financial Companies, 2018

Apr 26, 2019 | by Avantis RegTech Legal Research Team


The Reserve bank of India (RBI) on April 26, 2019, has issued a Notification to exclude certain Non-Banking Financial Companies (NBFCs) from the ambit of the Ombudsman Scheme. RBI had already implemented the Ombudsman Scheme for NBFCs which are authorized to accept deposits vide Notification dated February 23, 2018. RBI vide Para 11 of the Statement of Development and Regulatory Policies of the Monitory Policy Statement dated April 04, 2019 directs the NBFCs defined and registered under RBI Act, 1934 which are authorised to accept deposits and are Non-Deposit Taking NBFCs having customer interface, with assets size of Rupees 100 crore or above, to comply with the provisions of the Ombudsman Scheme for Non-Banking Financial Companies, 2018. 

Now, vide this Notification the Non-Banking Financial Company - Infrastructure Finance Company (NBFC-IFC), Core Investment Company (CIC), Infrastructure Debt Fund-Non-Banking Financial Company (IDF-NBFC) and an NBFC under liquidation, are excluded from the ambit of the Scheme. The extension of the Scheme to eligible Non-Deposit Accepting Non-Banking Financial Companies shall come into effect and force from April 26, 2019.

[Notification No. Ref. CEPD. PRS. No.4535/13.01.004/2018-19]

Click here to download the Notification.


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