Economics • Banking & FinanceMedium
What does the 'Internal Ombudsman Scheme' for regulated entities in India aim to achieve?
A. Provide an independent tier for grievance redressal within banks and NBFCs before complaints escalate to the RBI Ombudsman.✓ Correct Answer
B. Investigate cases of insider trading in the stock exchanges.
C. Review tax evasion reports submitted by commercial business entities.
D. Oversee the corporate governance practices of foreign institutional investors.
💡 Solution & Explanation
The Internal Ombudsman Scheme established by the Reserve Bank of India mandates certain regulated entities to set up an independent internal redressal tier to review complaints before they are escalated to the Banking Ombudsman. Alternative choices focusing on stock exchange insider trading, tax evasion, or foreign institutional investors are entirely unrelated to customer grievance redressal in banking. The Banking Ombudsman Scheme itself was introduced under the Banking Regulation Act.
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