What is Grievance Redressal Policy?
Recently, National Housing Bank ( NHB) has launched Grievance Redressal Mechanism to provide a simple, speedy and cost effective mechanism to the aggrieved parties of NHB/ customers of HFC. The portal is launched under NHB’s Grievance Redressal Policy, where it plays the role of a regulator for the housing finance companies (HFCs).
Being a financial institution, there will be occasions when its constituents will have complaints against its working like any other organization. NHB being the regulator of HFCs, there will also be occasions when the customers of HFCs would approach NHB for resolution of their grievances against them. It has been consistent endeavor of NHB to provide efficient service to all its constituents, including customers of HFCs that are under its regulatory ambit. NHB believes that the grievance redressal mechanism of an organization is the gauge to measure its efficiency and effectiveness as it provides important feedback on the working of the organization and the entities regulated by it.
Usage IT platform and application of email communication, helps NHB in attending the complaints received against the functioning of its various Departments efficiently. It has set up a Grievance Redressal Cell, which mainly caters to the complaints received against the HFCs. It has also appointed one of the Executive Directors as the Chief Grievance Redressal Officer.
However, need is felt to consolidate all practices and procedure in this regard into a Policy document. Accordingly, a structured system is being placed to make the grievance redressal mechanism more meaningful and effective. Such system would ensure that the redressal sought is just and fair and is permissible within the given framework of rules and regulations. The main purpose of a Complaint Redressal Policy is to put in place an appropriate mechanism to timely redress the complaint to the satisfaction of the complainant.
Policy Objectives: The objective of this Policy is to provide for an efficient and effective grievance redressal mechanism to the constituents of NHB, as also to the customers of HFCs regulated by it.
Types of Complaints
The objective of this Policy is to provide for an efficient and effective grievance redressal mechanism to the constituents of NHB, as also to the customers of HFCs regulated by it.
Complaints received by NHB can be classified into following two categories, viz. (i) against NHB, and (ii) against HFCs.
Complaint against NHB may be further classified as under :
A. Complaint against activities of Resource Mobilization Department – NHB mobilizes its resources through issue of bonds, debentures, certificate of deposits and commercial papers, term loan from banks and financial institutions as also through its retail deposit schemes. In the process, it interacts with investors, depositors, banks, financial institutions credit rating agencies, stock exchanges, etc. Aggrieved parties may have complaints against NHB and may submit their complaints to it for redressal.
B. Complaint against activities of Refinance Operations Department and Project Finance Department – NHB extends financial support by way of refinance to banks, HFCs, UCBs, RRBs ARDBs, Micro Finance Institutions etc. NHB also extends financial supports to public agencies for various types of projects, directly. Any borrowing institution aggrieved by the pre or post sanctioning process of NHB may have a grievance against the procedures and practices followed by NHB in this regards and approach it for redressal of the same.
C. Other Complaints – In addition to the complaints relating to the activities of borrowings and deployment of funds of NHB, there may be complaints concerning functioning of other Departments viz., Human Resources, Administration, Premises, Business Planning and Promotion, Advertisement and Publicity, etc. The person aggrieved by such activities including the employees of NHB may also lodge complaints to NHB for redressal of the same.
Complaint against HFCs may be classified as under:
A. Deposit related complaints – NHB has issued directions/ guidelines concerning deposit acceptance activities by HFCs under the National Housing Bank Act, 1987. Delays in repayment of deposits on due dates, non-payment of interest on such deposits, deduction of tax on such deposits, payment of deposits to the nominees, etc. are the areas where the complaint against HFCs are generally made by depositor of such companies.
B. Loan related complaints – NHB also receives complaints against HFCs with regard to their lending operations. The complaints mainly relates to levy of pre-payment charges, non refund of processing fees, arbitrary increase in rates of interest, non sanction of loan, failure to return original documents after repayment of the loans, takeover of possession without following due procedures, etc.
C. Other issues – Complaints are also received against HFCs from the general public in connection with their activities and operations.
Scope of the Policy The Policy cover all the grievances raised by the stakeholders of NHB viz., borrowers, lenders, depositors, service providers, employees etc. in connection with all actions taken by it or lack of action, about the standard of services/ deficiencies in services etc.
The Policy would also covers complaints of the customers of HFCs regulated by NHB against such companies where the complainant failed to secure resolution of his/her complaint after taking up the same directly with the concerned HFCs.