Blitz Bureau
NEW DELHI: The Reserve Bank of India (RBI) on January 15 issued guidelines for the appointment and functioning of internal ombudsmen in banks and NBFCs, aimed at strengthening the mechanism for resolution of customer grievances.
The RBI has issued separate directions for commercial banks, small finance banks, payments banks, non-banking financial companies, non-bank prepaid payment instrument issuers, and credit information companies to ensure specific clarity to each category.
The directions have been issued with a view to strengthening the internal grievance redress mechanism within regulated entities and ensuring a speedy and meaningful resolution of customer complaints by enabling a review by an apex-level authority within the entities, the apex bank said.
The guidelines state that in order to be eligible for appointment as internal ombudsman, the candidate shall either be a retired or serving officer, in the rank equivalent to a General Manager in the regulated entity of the Reserve Bank under the purview of the internal ombudsman framework or a financial sector regulatory body, having necessary skills and experience of minimum seven years of working in areas such as banking, non-banking finance, regulation, supervision, payment and settlement systems, credit information or consumer protection.
Every regulated entity should appoint at least one internal ombudsman, the RBI said. It should deal with the complaints that have already been examined by the regulated entity but have been partially resolved or wholly rejected.
