RBI issues directions on Internal Ombudsman rules for banks, NBFCs

The Reserve Bank of India (RBI) on Friday launched a grasp course on the Internal Ombudsman norms for banks and massive NBFCs to harmonise the directions relevant to numerous regulated entities on the Internal Ombudsman (IO) mechanism.

“These directions are anticipated to additional strengthen the IO mechanism and in flip, the Internal Grievance Redress system in regulated entities other than offering ease of compliance,” the RBI mentioned in a launch.

The directions are aimed toward bringing in uniformity in issues similar to timeline for escalation of complaints to the IO, exclusions from escalating complaints to the IO, minimal {qualifications} for appointing the IO and updating of reporting codecs.

They additionally present for the brand new put up of Deputy Internal Ombudsman.

The RBI mentioned the directions apply to banks and non-banking finance firms (NBFC), which is able to embody deposit-taking NBFCs (NBFCs-D) with 10 or extra branches; non-deposit taking NBFCs (NBFCs-ND) with asset measurement of Rs 5,000 crore and above and having public buyer interface.

(With inputs from IANS)