Economics • Banking & FinanceEasy
What is the main purpose of the 'Ombudsman Scheme' introduced by the Reserve Bank of India?
A. To audit commercial bank branches for tax compliance
B. To provide a cost-effective grievance redressal mechanism for customers against deficiencies in banking services✓ Correct Answer
C. To determine the capital adequacy ratio for cooperative banks
D. To oversee merger and acquisition proposals among private banks
💡 Solution & Explanation
The Reserve Bank Ombudsman Scheme establishes a cost-free and efficient grievance redressal framework for bank customers seeking remedy against deficient banking services. Financial audits and capital adequacy ratios are managed through separate supervisory departments rather than consumer ombudsmen. This institutional mechanism ensures accountability and protects retail customers from unfair banking practices.
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