The Reserve Bank of India is working on comprehensive consumer protection norms for the non-banking finance sector, its Executive Director NS Vishwanathan, has said.
The central bank will also soon align the private placement norms specified for NBFCs with that of the stipulations in the new company law enacted in 2013, Vishwanathan said at an Assocham organised national summit on 'NBFCs--way forward' in the capital on Friday.
Under the new company law, private placement cannot be undertaken with more than 200 persons in a financial year.
However, as per the RBI specified norms, private placement by NBFCs cannot exceed 49 persons in a year.
Vishwanathan also urged the NBFCs to ponder as to whether there should be an ombudsman for the sector on the lines of the one for the banking sector.
This senior RBI official urged NBFCs to take the aspect of "consumer protection' more seriously.