After the demonetization, lots of irregularities were found in various banking and non-banking companies of India. Lot of fraud transactions on cheques, cash and backdated cheques found. To overcome and to take control over the Companies Govt. has decided to make Financial Intelligence Unit check these Institutions to safeguard the currency with proper taxable transactions. Which monitors every transaction of Non-banking financial institutions or companies of India. Whereas till now lots of fraud cases found. To solve all the cases and complaints Reserve bank of India decided to start ombudsman scheme in India to check and redress the complaints. At first phase, a complaint will be solved by NBFC Non-banking financial company but if the company fails to solve the problem within one month then the complainant can do complaint to NBFC Ombudsman.
This scheme is totally free service for the complainant. There is also a provision of an Appellate authority in which complainant has an option to appeal against any decision of the Ombudsman. Ombudsman will look four centers-Chennai, Mumbai, Kolkata and New Delhi. This scheme will come into force when RBI decides. It will expand to the whole India
OBJECTIVES Ombudsman Scheme
- To Solve the complaints free of cost.
- To control the NBFC and also solve the complaints within the specific period of time.
- To monitor the companies transactions.
- Try to reduce fraud in these Institutions.
APPOINTMENT & TENURE
- 1) RBI will appoint Ombudsman position and its rank not lower than General Manager.
- 2)The tenure of Ombudsman will be of at least three years, RBI has a power to reduce or expand the tenure.
POWERS AND JURISDICTION
- The Reserve Bank of India already specifies the territory for the Ombudsman.
- The Ombudsman will look after the complaint and do a settlement on that.
- The Ombudsman also utilize the power to control and give directions to his office.
- The Ombudsman also make annual budget for expenditure
- The Ombudsman needs to send an annual report to the Governor about the activities with financial data every year.
- Reserve Bank of India publishes annual reports on the information shared by Ombudsman.
This Scheme called the Ombudsman Scheme this is for non-banking financial companies only. This scheme will come into force when RBI decides. It will help to solve the Institutional problem at a rapid rate and also to increase transparency.
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