📄 Concept Proposal: Establishment of the National Financial Redressal Commission (NFRC)
Submitted by: Vinay Dadmal Legal Drafting and Governance Reform Advocate 55, First Floor, Swarajnagar, Behind Omkarnagar, Manewada Ring Road, Nagpur – 440027 📧 Email: dadmalv2015@gmail.com 📅 Date: 22 August 2025
1. Background and Rationale
India faces a growing crisis of unresolved financial irregularities, including:
Cheque bounce cases under Section 138 of the Negotiable Instruments Act
Digital payment frauds and unauthorized transactions
Banking malpractices affecting borrowers and depositors
Delays in grievance redressal by financial institutions and ombudsmen
Despite judicial efforts, resolution timelines often exceed 12–24 months, undermining public trust and economic efficiency. The current system lacks a dedicated, fast-track mechanism for financial grievance redressal.
2. Proposal: National Financial Redressal Commission (NFRC)
A statutory body akin to the National Human Rights Commission (NHRC), the NFRC would serve as a quasi-judicial, technology-enabled platform for resolving financial irregularities swiftly and transparently.
Key Features:
Online Complaint Portal for citizens to file financial grievances
Time-bound Resolution Framework (preferably within 90 days)
Mediation and Adjudication Panels with financial and legal experts
Integration with RBI, SEBI, and Banking Ombudsmen
Public Advisories and Fraud Alerts to prevent recurrence
Annual Reports to Parliament on systemic financial risks and trends
3. Legal and Institutional Framework
The NFRC may be constituted via:
A dedicated NFRC Act, passed by Parliament
Or, an amendment to existing legislation such as:
The Consumer Protection Act
The RBI Act
The Information Technology Act (for digital frauds)
It should be empowered to:
Recommend prosecution or regulatory action
Issue binding directions to financial institutions
Refer cases to law enforcement when necessary
4. Benefits to Citizens and Institutions
Speedy Justice for victims of financial fraud and cheque dishonor
Reduced Burden on Courts, especially criminal benches
Enhanced Financial Discipline among institutions and individuals
Improved Trust in digital and formal banking systems
Support for Financial Inclusion, especially in rural and semi-urban areas
5. Request for Consideration
I humbly urge the following authorities to consider this proposal:
Law Commission of India: To study and recommend the legal framework for NFRC
Hon’ble Prime Minister of India: To initiate inter-ministerial consultation and public discourse
Department of Justice: To explore administrative feasibility and draft enabling legislation
This proposal aligns with the Government’s vision of Digital India, Ease of Doing Business, and Citizen-Centric Governance.
6. Contact and Collaboration
I am available to assist in drafting the detailed framework, conducting stakeholder consultations, and supporting pilot implementation.
Contact: Vinay Dadmal 📍 55, First Floor, Swarajnagar, Behind Omkarnagar, Manewada Ring Road, Nagpur – 440027 📧 Email: dadmalv2015@gmail.com
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