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Indian central bank proposes ombudsman for nonbanking financial companies

The Reserve Bank of India plans to set up an ombudsman to deal with matters related to nonbanking finance companies, Mint reported Dec. 30, citing a report from the central bank.

Mostly complaints against NBFCs relate to noncompliance with guidelines and turning down loan applications without valid reason, among others.

More than 95,000 complaints were received by the banking ombudsman regarding NBFCs during fiscal 2016, a significant increase from the prior year, which saw around 85,000 such cases reported.