Now Internal Ombudsman For Credit Information Companies I.E. (Nbfc’s/Banks)

The Reserve Bank of India (RBI) had announced an Ombudsman Scheme to strengthen and improve the efficiency of the internal grievance redressal mechanisms of Credit Information Companies (CIC’s) and also decided to bring the CIC’s under the Internal Ombudsman (IO) framework in its ‘Statement of Developmental and Regulatory Policies dated 05.08.2022.

As per the RBI Notification No. CEPD.PRD.No.S806/13-01-008/2022-2023 dated 06.10.2022 the RBI directs all CIC’s holding a Certificate of Registration under sub-section (2) of Section 5 of the Act, to comply with the Reserve Bank of India (Credit Information Companies – Internal Ombudsman) Directions, 2022.

These Directions shall apply to all CIC’s as defined under sub-section (e) of section 2 of the Credit Information Companies (Regulation) Act, 2005 as amended from time to time.

The Internal Ombudsman shall report to the Managing Director or Chief Executive Officer of the CIC administratively, and to the Board functionally.

The CIC shall, within five working days of appointment of the Internal Ombudsman, furnish the details of the individual so appointed to the Consumer Education and Protection Department, Central Office, Reserve Bank of India (email) in the following format:

• Name of the Internal Ombudsman
• Details of the last positions held / organization names
• Date of Appointment
• Terms (in years)
• Brief professional profile, including previous exposure to financial serviceshighlighting those that make them eligible for appointment.

The Appointment, Role and Responsibilities and Supervisory oversight of the Internal Ombudsman is explained in the Notification below.

These Directions are introduced with a view to strengthen the internal grievance redress mechanism within the CIC’s by enabling a review of customer complaints before their rejection, by an independent apex level authority within the CIC and shall come into effect from 01.04.2023