Appointment of Lokpal for Non-Banking Financial Companies

Question: Recently, in the initial phase by the RBI, of minimum how much amount asset holder NBFCs has been announced for the appointment of Lokpal?
(a) 10 lakh rupees
(b) 5 lakh rupees
(c) 3 lakh rupees
(d) 1 lakh rupees
Answer: (a)
Related Facts:

  • In the first week of February, a significant development by the RBI was announced to bring NBFCs under the purview of the Ombudsman.
  • This Ombudsman will cover (NBFCs) whose asset size is minimum 10 lakh or more.
  • Further, those NBFCs will also be brought under its scope, whose asset is 100 crore rupees or more and the customer interface is also available.
  • This scheme will be implemented in the end of February, 2018.
  • Under the scheme, if there is any complaint from the borrowers of financial companies (NBFCs), they will be able to contact their Ombudsman directly.
  • In this way their grievances will be settled soon.
  • Initially this scheme will be applicable to all deposit-taking NBFCs.
  • RBI’s intent is to further strengthen the rules around these companies (NBFCs).
  • It is noteworthy that so far, for the consumer complaints, the RBI had made mandatory to have obligatory Grievance Redressal Officer for all NBFCs.
  • Whose names and addresses were present in the workspaces of NBFCs.
  • It is important that NBFCs works under the requirement of low capital and do the risk holding business in comparison to the banks.
  • Thus, the recent step of RBI is an important step in this direction.

Reference:
https://economictimes.indiatimes.com/industry/banking/finance/rbi-to-set-up-ombudsman-for-nbfcs/articleshow/62819968.cms
https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=43079