Economics • Banking & FinanceMedium
What is the primary objective of the 'Internal Ombudsman Scheme' mandated by the RBI for certain regulated entities?
A. To inspect the foreign exchange transactions of corporate houses.
B. To provide a cost-free appellate tier for resolving customer grievances internally before they reach the Banking Ombudsman.✓ Correct Answer
C. To monitor the liquidity coverage ratios of cooperative banks.
D. To audit the non-performing assets of public sector banks.
💡 Solution & Explanation
The Reserve Bank of India mandated the Internal Ombudsman Scheme to establish an independent, cost-free internal appellate mechanism within regulated financial institutions to review unaddressed or rejected customer complaints. Foreign exchange inspections, liquidity ratio monitoring, and asset quality audits fall under separate regulatory and supervisory frameworks. Effective grievance redressal mechanisms enhance customer trust and institutional accountability in the financial sector.
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