The Government has set up a Task Force on Financial Redress Agency (FRA), as recommended by the Financial Sector Legislative Reforms Commission (FSLRC), on June 5, 2015, with the following Terms of Reference:

Review the international best practices in consumer grievance redress, including ombudsmen and other dispute resolution mechanisms, with a focus on the financial sector.

• Review the present practices of management of financial consumer redress in India.
• Support the Ministry of Finance in procuring the services of competent consultant(s) to operationalise the FRA.
• Guide and monitor the consultant(s) in order to develop the design, business model, funding, financial controls, risk management plan, administrative plan, process manuals, information technology system and accountability and reporting mechanisms, etc.
• The Task Force will complete its task within one year.

This was stated by Shri Jayant Sinha, Minister of State in Ministry of Finance in written reply to a question in the Lok Sabha today.

Financial Redress Agency design to centralize consumer grievance redress and set institutional, funding and accountability frameworks. A Task Force has been constituted to operationalise a Financial Redress Agency by reviewing international and Indian practices of consumer grievance redress in the financial sector and by supporting the Ministry of Finance in procuring and supervising consultants to design the FRA's business model, funding, financial controls, risk management, administration, process manuals, IT systems, and accountability and reporting mechanisms, with completion of its work within one year.