Master Class on NBFC - II An Insight into Fair Practice Code and Internal Ombudsman

Welcome to our exclusive Master Class: NBFCs: Fair Practice Code & Internal Ombudsman! 🤝🛡️

In a customer-centric financial world, an NBFC's reputation and sustainability hinge on its ethical conduct and robust grievance redressal mechanisms. The Reserve Bank of India (RBI) has put forth a stringent regulatory framework to ensure fairness and transparency in all dealings with customers. This master class will provide you with a deep dive into two critical pillars of this framework: the Fair Practices Code (FPC) and the Internal Ombudsman (IO) scheme.

We will explore how these mechanisms safeguard customer interests, build trust, and ensure your NBFC is not just compliant but also a beacon of good governance.

In this master class, our experts will cover:
Fair Practices Code (FPC): A detailed breakdown of the principles and guidelines NBFCs must follow throughout the entire customer journey. We will cover:

Loan Application & Processing: The requirements for transparent communication, acknowledgement of applications, and clear disclosure of fees and charges.

Terms & Conditions: The importance of a clear, comprehensive, and non-discriminatory loan agreement, with a special focus on the disclosure of annualized interest rates and penal charges in bold.

Disbursement & Recovery: The rules for timely loan disbursement and the prohibition of coercive recovery methods, as per the latest RBI circulars.

Release of Securities: The obligation to release all securities after the full repayment of a loan.

Digital Lending Guidelines: How the FPC has been updated to incorporate regulations on digital lending platforms, ensuring transparency and accountability in the digital space.

Internal Ombudsman (IO) Scheme: An in-depth look at the RBI's mandate for an in-house grievance redressal authority.

Applicability: The criteria for NBFCs that are required to appoint an Internal Ombudsman, including those with an asset size of ₹5,000 crore or more and those with 10 or more branches (for deposit-taking NBFCs).

Role & Responsibilities: The IO’s primary function to review customer complaints that have been partially or wholly rejected by the NBFC's internal grievance redressal mechanism. The IO does not handle complaints directly from customers.

Independence & Appointment: The qualifications and independence criteria for appointing an IO, including a minimum experience of seven years and a fixed tenure of at least three years. The IO must not be currently or previously employed by the NBFC being appointed to.

The Ombudsman Process: Understanding the flow of complaints from the customer to the NBFC's grievance cell, and then its automatic escalation to the IO for review.

Who Should Watch:
Compliance Officers & Company Secretaries of NBFCs
Heads of Business and Operations
Board Directors and Senior Management
Legal and Risk Professionals
Anyone involved in the financial services sector, especially in lending and customer relations.

Don't miss this essential master class to strengthen your NBFC's compliance framework and customer service standards!

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