The Reserve Bank of India established the NBFC Ombudsman Scheme. It resolves complaints about service deficiencies regarding deposits, advances, loans, and other issues. Students who have taken an education loan from NBFCs can get the desired support for delays in disbursement or difficulties in repayment.
The NBFC Ombudsman responds to the complaints within a specified timeframe. If the NBFC fails to respond within 30 days or provides an unsatisfactory resolution, the student can proceed with the NBFC complaint to RBI. Let’s explore more details and the process to lodge NBFC Ombudsman complaints online.
Table of contents
What is the NBFC Ombudsman Scheme?
The full form of NBFC is Non-Banking Financial Company. The NBFC Ombudsman is a quasi-judicial authority set up by the RBI. It addresses and resolves customer complaints against Non-Banking Financial Companies.
The scheme aims to provide a quick and efficient dispute-resolution mechanism for consumers who face issues with financial services offered by NBFCs.
- It covers a wide range of complaints, including those related to loans, delays in service, and unfair practices.
- The NBFC Ombudsman aims to resolve complaints within 30 days, ensuring quick redressal of grievances.
- You can submit the complaint online through the RBI’s Complaint Management System (CMS) at the RBI CMS Portal.
Features of the NBFC Ombudsman Complaint Scheme
NBFC Ombudsman online complaint portal aims to protect consumer rights by providing a platform for addressing grievances against NBFCs. It resolves complaints promptly without the need for lengthy legal processes. Check out some of the features of the NBFC Ombudsman scheme for students who have applied for NBFC education loans to study abroad–
- Students can lodge complaints related to –
– Excessive interest rates
– Non-disbursement or partial disbursement of the sanctioned loan
– Misleading terms and conditions
– Issues with foreclosure or loan repayment processes
– Unjustifiable penalties or charges. - Filing a complaint with the NBFC Ombudsman is free of charge, making it accessible to all consumers.
- The ombudsman is required to respond to complaints within 30 days. In case of no or unsatisfactory resolution, students can file online complaints against NBFC with RBI with their RBI Ombudsman scheme.
- In cases where you have suffered losses due to negligence or unfair practices by an NBFC, the ombudsman has the authority to award compensation.
Benefits of the NBFC Ombudsman Scheme
If you encounter issues like delays in the education loan disbursement process or lack of clarity regarding repayment terms, you can file a complaint with the NBFC Ombudsman. The scheme adheres to fair practices, protecting your interests. The streamlined process also ensures quick resolutions. Check out some of the benefits below-
- The NBFC Ombudsman offices are spread across regions, ensuring accessibility for students regardless of their location.
- You can lodge an online NBFC complaint for the problem without needing to approach a court or legal system.
- The Ombudsman ensures that grievances related to loan processing details, incorrect EMI calculations, or disbursement issues are resolved efficiently.
- Issues like undue penalties or hidden charges in education loan agreements can be addressed without hassle.
- Students can trust that their complaints will be handled based on regulatory guidelines and fair practices as the Ombudsman operates independently, ensuring unbiased resolutions.
- Filing a complaint with the NBFC Ombudsman is free of cost, which is particularly beneficial for students managing tight budgets.
Also Read: Check out this blog to know which one is better for an education loan abroad- NBFC or Banks? Explore eligibility, application process, comparison table, and more.
How to File Complaint with NBFC Ombudsman?
Filing a complaint related to matters on education loans is simple. Before approaching the ombudsman, try resolving your issue directly with your NBFC’s customer service. It is important to check your eligibility and once you fulfil that, you can file a complaint with the NBFC. Check out the details below-
Eligibility to File a Complaint
You can approach the NBFC Ombudsman if:
- The NBFC failed to resolve your complaint within 30 days of submission.
- You are dissatisfied with the resolution provided by the NBFC.
- Your complaint relates to issues such as loan disbursement, EMI calculations, delays, or unethical practices by the NBFC.
Steps to File a Complaint
Step 1: Lodge a Complaint with the NBFC
Before approaching the Ombudsman, you must first submit a written complaint to the NBFC, either through their customer service channels, email, or in person at their branch. Ensure you retain copies of all correspondence and complaint receipts.
Step 2: Identify the Relevant NBFC Ombudsman Office
The NBFC Ombudsman operates across multiple offices in India. Identify the one that governs the region where the NBFC’s head office or branch is located.
Step 3: Submit the Complaint
You can file your complaint:
- Online: Through the Reserve Bank of India’s (RBI) Complaint Management System (CMS) portal (CMS RBI Portal).
- Offline: By submitting a written complaint to the relevant Ombudsman office.
Your complaint should include:
- Your name, address, and contact information.
- Details of the NBFC (name and branch).
- Description of the issue, along with supporting documents.
- Copies of earlier correspondence with the NBFC.
Step 4: Await Resolution
Once filed, the Ombudsman will review your complaint and may conduct a hearing (in-person or virtual) to gather further details. They will aim to resolve the issue within 30 days.
How to File a Complaint with RBI?
If your issue remains unresolved or the resolution provided by the NBFC Ombudsman is unsatisfactory or unresolved, you can escalate the matter to the Appellate Authority. It is the Deputy Governor of the RBI in charge of the NBFC Ombudsman Scheme.
Your appeal should be filed within 30 days of receiving the Ombudsman’s decision. You can file your grievance directly with the Reserve Bank of India (RBI) through the CMS portal. Here’s how to file a complaint with RBI if your complaint is unresolved or you are not satisfied with the resolution-
- Visit the RBI Complaint Management System (CMS).
- Click on ‘File A Complaint’ and proceed by entering the captcha code.
- Enter your name and verify your mobile number using OTP.
- Fill out the online complaint form, providing all required details and attaching relevant documents.
- After submitting your complaint, you will receive an acknowledgment from the RBI.
- Keep track of your complaint status using any reference number provided during submission.
- The RBI will review your complaint and may forward it to the appropriate Ombudsman for further examination.
Alternatively, you can also file a complaint to RBI via the following means-
| Post | Send your complaint along with supporting documents to: Centralized Receipt and Processing Centre (CRPC) Reserve Bank of India 4th Floor, Sector 17, Chandigarh 160017 |
| You can also email your complaint to [email protected]. | |
| Helpline | For assistance, you can call the RBI helpline at 14440. |
Documents Required
Collect all relevant documents, including-
- A copy of your original complaint to the NBFC.
- Any correspondence received from the NBFC regarding your complaint.
- Relevant loan documents and transaction details.
Also Read: Understand all about grievance redressal mechanism for education loans. Find out how you can address your complaints effectively.
NBFC Ombudsman Maximum Compensation
One of the key aspects of this scheme is the compensation that can be awarded to complainants. The provisions ensure that compensation is to be provided for losses, mental agony, and harassment.
While there is no limit on the amount involved in a complaint, the compensation that the Ombudsman can reward is –
- Compensation for Consequential Loss: The NBFC Ombudsman’s maximum compensation for any losses suffered by the complainant is up to INR 20 lakhs. The actual amount is considered based on the actual loss incurred due to the actions or omissions of the NBFC.
- Compensation for Mental Agony and Harassment: Additionally, the NBFC Ombudsman’s maximum compensation for any mental anguish, harassment, or loss of time and expenses incurred by the complainant is up to INR 1 lakh.
This structure ensures that while there is flexibility in addressing complaints, there are defined limits on the compensation awarded for specific grievances, making the process fair and manageable for both consumers and NBFCs.
This was all about the NBFC Ombudsman scheme for education loans. Check out some of the FAQs below. Understanding these aspects can help you effectively navigate any challenges you face in your financial dealings.
FAQs
Yes, the Reserve Bank of India has established an NBFC Ombudsman to address customer complaints against Non-Banking Financial Companies.
Non-Banking Financial Companies (NBFCs) are regulated by the Reserve Bank of India (RBI).
The NBFC Ombudsman Scheme is a grievance redressal mechanism established by the Reserve Bank of India (RBI) to address complaints against NBFCs regarding deficiencies in their services.
You can file an online complaint against NBFC through the RBI’s official website or by submitting a written complaint to the RBI’s Centralized Receipt and Processing Centre.
No, filing a complaint with the NBFC Ombudsman is completely free of charge, ensuring accessibility for all consumers.
The Ombudsman can award compensation up to INR 20 lakh for losses and INR 1 lakh for mental agony or harassment.
The NBFC Ombudsman aims to resolve complaints within 30 days from the date of receipt. However, complex cases may take longer.
If you are unsatisfied with the resolution provided by the NBFC ombudsman, you can escalate your complaint to the RBI or seek legal recourse if necessary.
You can complain directly to the NBFC ombudsman via their online portal or through physical submission at designated RBI offices across India.
There are multiple offices across India, including major cities like Mumbai, Chennai, Kolkata, and New Delhi, where you can approach the banking ombudsman for NBFC issues.
Yes, you can file an NBFC ombudsman online complaint through the RBI’s Centralized Complaint Management System available on their website.
Complaints related to loan disbursement delays, service deficiencies, and unfair practices by NBFCs fall under the scope of the scheme.
As of now, there are three main ombudsman schemes operational under RBI: the Banking Ombudsman Scheme, the Ombudsman Scheme for Non-Banking Financial Companies (NBFC), and the Ombudsman Scheme for Digital Transactions.
To learn more about education loans, the best bank accounts for students, forex, banking experience for global students, or international money transfers, reach out to our experts at 1800572126 to help ease your experience with studying abroad.
Follow Us on Social Media
