In November 2021, RBI introduced an Internal Ombudsman mechanism for select Non-Banking Financial Companies.Non-Deposit-taking NBFCs with assets size of _______must appoint an Internal Ombudsman (IO).

Question

Question

This question was previously asked in

SBI PO Mains Memory Based Paper (Held on:02 January 2022)

Answer 1

The correct answer is ₹5,000 crore.

Key Points

The Reserve Bank of India (RBI) on 15 November 2021 introduced an Internal Ombudsman mechanism for select Non-Banking Financial Companies (NBFCs).
Desposit-taking NBFCs with 10 or more branches and non-deposit taking NBFCs with assets size of ₹5,000 crore must appoint an Internal Ombudsman (IO).
The RBI has given six months time to follow the directions.

Important Points

The direction covers the appointment/tenure, role and responsibilities, procedural guidelines, and oversight mechanism for the IO.
All complaints that are partly or wholly rejected by the NBFC will be reviewed by the IO before the final decision of the NBFC is conveyed to the complainant.
The IO will not entertain any complainants directly from members of public.
The implementation of the IO mechanism will be monitored by the NBFC’s internal audit system apart from regulatory oversight by RBI.