On which date, the Ombudsman Scheme for the Non-Banking Financial Companies (NBFC), 2018 was effectively introduced by Reserve Bank of India?
- (a)26 January, 2018
- (b)23 January, 2018
- (c)26 February, 2018
- (d)23 February, 2018
Correct — D, 23 February 2018. The Reserve Bank of India introduced the Ombudsman Scheme for Non-Banking Financial Companies, 2018 with effect from 23 February 2018, framed under Section 45L of the RBI Act, 1934, to give customers of NBFCs a free and speedy grievance-redress mechanism. It first covered deposit-taking NBFCs and was extended in 2019 to larger non-deposit-taking NBFCs.
- (a)26 January, 2018 — Not the date the scheme took effect (26 January is Republic Day) — it commenced on 23 February 2018.
- (b)23 January, 2018 — Right day of the month but wrong month; the scheme came into force in February, not January 2018.
- (c)26 February, 2018 — Right month but wrong day — the effective date was the 23rd, not the 26th of February 2018.
The RBI runs Ombudsman schemes as free, quasi-judicial grievance-redress mechanisms for financial consumers. After the Banking Ombudsman (1995), it added the NBFC Ombudsman (2018) and the Ombudsman for Digital Transactions (2019), then merged all three into the Reserve Bank - Integrated Ombudsman Scheme (RB-IOS), 2021 under a 'One Nation One Ombudsman' approach.
This is a date-recall item, and the distractors simply swap 23 with 26 and January with February. Anchor the exact date: 23 February 2018.
- NBFC Ombudsman Scheme, 2018 came into effect on 23 February 2018.
- Framed under Section 45L of the Reserve Bank of India Act, 1934.
- First covered deposit-taking NBFCs; extended in 2019 to non-deposit-taking NBFCs with asset size of Rs. 100 crore or more.
- Subsumed under the Reserve Bank - Integrated Ombudsman Scheme (RB-IOS), 2021, launched on 12 November 2021.
- 1995 - Banking Ombudsman Scheme
- 23 Feb 2018 - NBFC Ombudsman Scheme
- 2019 - Ombudsman for Digital Transactions
- 2021 - RB Integrated Ombudsman Scheme (merges all)
The NBFC Ombudsman Scheme took effect on 23 February 2018 and was folded into the RB-IOS in 2021.
- Mixing the RBI's NBFC Ombudsman (financial grievances) with the Lokpal (anti-corruption ombudsman)
- Swapping the 23rd/26th or January/February in the date
Usually a straight date or scheme-recall item — fix 'NBFC Ombudsman = 23 February 2018, later merged into RB-IOS 2021'.
With reference to the institution of Banking Ombudsman in India, which one of the statements is not correct?
- (a) The Banking Ombudsman is appointed by the Reserve Bank of India
- (b) The Banking Ombudsman can consider complaints from Non-Resident Indians having accounts in India
- (c) The orders passed by the Banking Ombudsman are final and binding on the parties concerned
- (d) The service provided by the Banking Ombudsman is free of any fee
Answer(c) The orders passed by the Banking Ombudsman are final and binding on the parties concerned
UPSC 2010 on the RBI Banking Ombudsman — the same RBI grievance-redress mechanism that the NBFC Ombudsman Scheme, 2018 extended to NBFC customers.
- practice — not a real PYQ
Under which statute did the RBI frame the Ombudsman Scheme for Non-Banking Financial Companies, 2018?
- (a)Banking Regulation Act, 1949
- (b)Reserve Bank of India Act, 1934
- (c)Consumer Protection Act, 1986
- (d)SARFAESI Act, 2002
Answer(b) Reserve Bank of India Act, 1934 (Section 45L).
- practice — not a real PYQ
In 2021 the RBI merged its Banking, NBFC and Digital-Transactions ombudsman schemes into a single scheme called the:
- (a)Reserve Bank - Integrated Ombudsman Scheme (RB-IOS)
- (b)National Financial Ombudsman Scheme
- (c)Unified Grievance Redress Scheme
- (d)One Nation Banking Ombudsman
Answer(a) Reserve Bank - Integrated Ombudsman Scheme (RB-IOS), 2021.