Friday, July 30, 2021
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Ombudsman for NBFC customers

The Reserve Bank of India (RBI) Deputy Governor NS Vishwanathan informed that the central bank considering an ‘ombudsman’ scheme for redressal of customer grievances at non-banking finance companies (NBFCs) in line with banks. With so many irregularities noted in working of NBFCs, RBI step will be a welcome one in right direction. RBI has also declined demand of NBFCs for accepting deposits from public with a view to protect the interest of depositors.

At the same time, RBI should ensure that NBFCs must not play useless role of middle-man in loan-business by being funded by public-sector banks on lower interest-rate for giving loans on higher interest-rate. NBFCs profiteering as money-lender only on public-money coming through public-sector banks can in no way be held justified. It is also time that concept of foreclosure-charges making loan-takers like bonded citizens, may be abolished. RBI itself under an RTI response once said that RBI in principle against concept of foreclosure-charges, a stand changed later. NBFCs and banks can overcome their expenses by charging processing fees for loans.


Subhash Chandra Agrawal

(The views expressed by the author in the article are his/her own.)

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