Economics • Banking & FinanceEasy
What is the role of the 'Banking Ombudsman' appointed by the Reserve Bank of India?
A. To audit annual balance sheets of private sector banks for tax compliance.
B. To act as a senior official who redresses customer complaints against deficiencies in banking services.✓ Correct Answer
C. To fix interest rates on savings deposits across all commercial banks.
D. To manage foreign exchange reserves and currency intervention policies.
💡 Solution & Explanation
The Banking Ombudsman scheme established by the Reserve Bank of India appoints senior quasi-judicial officials tasked with redressing consumer grievances regarding deficiencies in banking services. Alternative regulatory mechanisms deal with corporate tax audits, monetary policy setting, or central banking reserves management. This framework ensures retail customers have a swift and cost-free forum to resolve disputes with commercial banks.
More Economics Banking & Finance questions
- What is the primary role of the 'Clearing Corporation of India Limited' in the Indian financial markets?
- What does the 'Monetary Policy Committee (MPC)' in India do when it decides to adopt a 'contractionary…
- What is the primary function of the 'Monetary Policy Committee' established under the provisions of the…
- What is the structural purpose of the 'Liquidity Coverage Ratio' introduced under the Basel III international…
- What does the term 'Base Rate' signify in the lending operations of commercial banks in India?