Reserve Bank of India (Non-Banking Financial Companies - Internal Ombudsman) Directions, 2026 · RBI/CEPD/2025-26/384

RBI/CEPD/2025-26/384
CEPD.PRD.No.S1030/13.01.019/2025-26
January 14, 2026

Reserve Bank of India (Non-Banking Financial Companies - Internal Ombudsman) Directions, 2026

In exercise of the powers conferred by Section 45L read with 45M of the Reserve Bank of India Act, the Reserve Bank of India, being satisfied that it is necessary and expedient in the public interest so to do, hereby, issues the Directions hereinafter specified.

These Directions are issued with a view to strengthen the Internal Grievance Redress mechanism within a Non-Banking Financial Company (NBFC) and ensure a speedy and meaningful resolution of customer complaints by enabling a review before their rejection, by an apex level authority within the NBFC.

Chapter I

Preliminary

1. Short Title and Commencement

(1) These Directions shall be called the Reserve Bank of India (Non-Banking Financial Companies - Internal Ombudsman) Directions, 2026.

(2) These Directions shall come into force with immediate effect except clause 7(2), 14(2) and 14(4) which shall be complied with, latest by June 30, 2026.

2. Suspension

(1) The Reserve Bank, if it is satisfied that it is expedient so to do, may, by an order, suspend for such period as may be specified in the order, the operation of any or all of the provisions of these Directions, either generally or in relation to any specified regulated entity.

(2) The Reserve Bank may by an order, extend from time to time, the period of any suspension ordered as aforesaid by such period, as it may deem fit.

3. Applicability

(1) These directions shall be applicable to NBFCs (excluding Housing Finance Company, Core Investment Company, Infrastructure Debt Fund-Non-Banking Financial Company, Non-Banking Financial Company - Infrastructure Finance Company, Non-Operative Financial Holding Company, Primary dealers, Mortgage Guarantee Company) as defined under clause 4(1)(i) of these Directions and fulfilling the following criteria as on March 31, 2025:

• Deposit-taking NBFCs (NBFCs-D) with 10 or more branches;
• Non-Deposit taking NBFCs (NBFCs-ND) with asset size of Rs.5,000 crore and above and having public customer interface;

(2) The directions shall also be applicable to an NBFC, which meets the above mentioned criteria after March 31, 2025, with effect from six months from meeting the eligibility criteria;

(3) These directions shall not be applicable to the NBFC under Corporate Insolvency Resolution Process, NBFC in liquidation and / or winding up, or under directions of Reserve Bank of India.

4. Definitions

(1) In these Directions, unless the context states otherwise, the terms herein shall bear the meanings assigned to them as below:

• (a) “Competent Authority” means Executive Director / Managing Director / Chief Executive Officer in the NBFC;
• (b) “Complaint” means a representation in writing or through other modes alleging deficiency in service on the part of the NBFC with or without seeking relief thereon;
• (c) “Credit Information Company (CIC)” means a company as defined in the Companies Act, 2013 and has been granted a certificate of registration under sub-section (2) of section 5 of the Credit Information Companies (Regulation) Act, 2005;
• (d) “Customer” means a person who uses, or is an applicant for, a service provided by the NBFC;
• (e) “Deficiency in service” means a shortcoming or an inadequacy in any service, which the NBFC is required to provide statutorily or otherwise, which may or may not result in financial loss or damage to the customer;
• (f) “Deputy Internal Ombudsman (Dy. IO)” means any person appointed under clause 6 of these Directions;
• (g) “Financial Sector Regulatory Body” means regulatory body for financial sector entities and includes:
  • The Reserve Bank of India established under the Reserve Bank of India Act, 1934;
  • The Securities and Exchange Board of India established under the Securities and Exchange Board of India Act, 1992;
  • The Insurance Regulatory and Development Authority of India established under the Insurance Regulatory and Development Authority of India Act, 1999;
  • The Pension Fund Regulatory and Development Authority established under the Pension Fund Regulatory and Development Authority Act, 2013;
• (h) “Internal Ombudsman (IO)” means any person appointed under clause 5 of these Directions;
• (i) “Regulated Entity (RE)” means a commercial bank or payments bank or small finance bank or a non-banking financial company or a non-bank prepaid payment instrument issuer or a credit information company which are covered under the purview of the Internal Ombudsman framework, or any other entity as may be specified by the Reserve Bank from time to time.

(2) All other expressions, unless defined herein, shall have the same meaning as assigned to them under the Banking Regulation Act, 1949, the Reserve Bank of India Act, 1934, the Payment and Settlement Systems Act, 2007, the Credit Information Companies (Regulation) Act, 2005, the Credit Information Companies Rules, 2006, the Credit Information Companies Regulations, 2006, or the Reserve Bank - Integrated Ombudsman Scheme (as amended from time to time) or regulations, directions and guidelines issued by the Reserve Bank of India.

Chapter II

Office of the Internal Ombudsman

5. Appointment of Internal Ombudsman

(1) The IO shall either be a retired or serving officer, in the rank equivalent to a General Manager in the RE under the purview of the Internal Ombudsman framework or a Financial Sector Regulatory Body, having necessary skills and experience of minimum seven years of working in areas such as banking, non-banking finance, regulation, supervision, payment and settlement systems, credit information or consumer protection.

Provided that, if the person is a serving officer, he / she is required to relinquish the same before assuming charge as IO.

(2) The IO shall previously not have been employed, nor presently be employed, by the NBFC or a holding, associate or subsidiary company of the NBFC.

(3) The IO shall not be over 70 years of age before the completion of the tenure.

(4) A person may work as the IO in more than one RE simultaneously at the discretion of the REs concerned, subject to the approval of the Board or Customer Service Committee / Consumer Protection Committee of the Board of the appointing RE.

6. Appointment of Deputy Internal Ombudsman

(1) The Dy. IO shall either be a retired or serving officer, in the rank equivalent to a Deputy General Manager in the RE under the purview of the Internal Ombudsman framework or a Financial Sector Regulatory Body, having necessary skills and experience of minimum five years of working in areas such as banking, non-banking finance, regulation, supervision, payment and settlement systems, credit information or consumer protection.

Provided that, if the person is a serving officer, he / she is required to relinquish the same before assuming charge as Dy. IO.

(2) The Dy. IO shall previously not have been employed, nor presently be employed, by the NBFC or a holding, associate or subsidiary company of the NBFC.

(3) The Dy. IO shall not be over 70 years of age before the completion of the tenure.

(4) The Dy. IO shall not be employed in more than one RE simultaneously.

7. Number of Internal Ombudsman / Deputy Internal Ombudsman

(1) Every NBFC shall appoint at least one IO.

(2) The Board of the NBFC shall determine, at least once in a year, the number of IO/ Dy. IO to be appointed having due regard to volume and complexity of the complaints received, and ensuring that the IO/ Dy. IO get sufficient time to apply his/her mind on the principles of fairness, equity and natural justice while reviewing the resolution provided by the NBFC.