The Reserve Bank of India (RBI), on January 14, 2026, issued the Reserve Bank of India (Non-Banking Financial Companies – Internal Ombudsman) Directions, 2026 under Sections 45L and 45M of the Reserve Bank of India Act. The Directions aim to strengthen the internal grievance redress mechanism in NBFCs by ensuring a structured, independent, and apex-level review of customer complaints before their rejection, thereby enabling faster and more meaningful resolution.
The Directions are applicable to deposit-taking NBFCs with ten or more branches and non-deposit-taking NBFCs with asset size of ₹5,000 crore and above having public customer interface, as on March 31, 2025, with a phased applicability for entities meeting the criteria thereafter. Certain categories such as Housing Finance Companies, Core Investment Companies, Infrastructure Finance NBFCs, and NBFCs under insolvency or liquidation are excluded. Most provisions come into force immediately, while select clauses are required to be complied with by June 30, 2026.
The framework provides for the appointment of an Internal Ombudsman and Deputy Internal Ombudsman, defines key terms such as customer, complaint, deficiency in service, and competent authority, and empowers RBI to suspend the operation of the Directions in specified cases. Overall, the Directions seek to enhance customer protection, accountability, and transparency in NBFC grievance handling systems.
[Notification No. RBI/CEPD/2025-26/384]
