November 15, 2021
The Chairman/Managing Director & CEO
a) NBFCs-D with 10 or more branches, and
b) NBFCs-ND with asset size of Rs 5,000 crore and above (excluding NBFCs given in para 3 of this direction)
Madam/Dear Sir,
In exercise of the powers conferred by Section 45 (L) read with 45 (M) of the Reserve Bank of India Act, 1934, Reserve Bank of India (RBI) being satisfied that it is in public interest and in the interest of conduct of business relating to Non-Banking Financial Companies (NBFCs), directs NBFCs registered with RBI under Section 45-IA of the RBI Act, 1934, fulfilling the criteria given below, to appoint an Internal Ombudsman(IO).
2. NBFCs fulfilling the following criteria as on date would be required to appoint the IO:
a) Deposit-taking NBFCs (NBFCs-D) with 10 or more branches.
b) Non-Deposit taking NBFCs (NBFCs-ND) with asset size of Rs.5,000 crore and above and having public customer interface.
3. The following types of NBFCs will be excluded from the applicability of this direction:
a) Stand-alone Primary Dealer;
b) Non-Banking Financial Company – Infrastructure Finance Company (NBFC-IFC);
c) Core Investment Company (CIC);
d) Infrastructure Debt Fund – Non-Banking Financial Company (IDF-NBFC);
e) Non-Banking Financial Company – Account Aggregator (NBFC-AA);
f) NBFC under Corporate Insolvency Resolution Process;
g) NBFC in liquidation;
h) NBFC having only captive customers.
4. An NBFC shall be required to comply with the provisions of this direction as follows:
a) NBFC fulfilling the criteria (para 2 above) as on date – within six months;
b) NBFC fulfilling the criteria post issue of this direction and NBFC commencing operations after the issue of this direction – within six months of attaining the specified criteria, as may be applicable.
5. Any NBFC which is covered by this direction shall continue to have an IO for a period of three years after the company falls below the thresholds (para 2 above). If the term of the incumbent IO ends before this three-year period, the NBFC, with the prior approval of RBI, may not appoint another IO.
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