New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    What is the primary objective of the Banking Ombudsman

    Scheme introduced by the RBI?
    A To provide a judicial court for resolving banking disputes Correct Answer Incorrect Answer
    B To facilitate quick and cost-effective resolution of banking service complaints Correct Answer Incorrect Answer
    C To replace the role of banking regulators Correct Answer Incorrect Answer
    D To promote financial literacy among bank customers Correct Answer Incorrect Answer
    E To govern banking policies Correct Answer Incorrect Answer

    Solution

    The Banking Ombudsman Scheme was introduced by the Reserve Bank of India (RBI) in 1995 under the Banking Regulation Act, 1949. Its objective is to offer a quick, cost-effective resolution for complaints regarding banking services. The scheme simplifies the grievance redress process by providing a centralized mechanism for customers to register complaints, aiming for a speedy and satisfactory resolution. The Banking Ombudsman, appointed by the RBI, handles complaints through settlement or by issuing an award. The scheme has been revised multiple times, with the latest revision in 2017.

    Practice Next