gs1medium
With reference to the institution of Banking Ombudsman in India, which one of the statements is not correct?
- A.The Banking Ombudsman is appointed by the Reserve Bank of India
- B.The Banking Ombudsman can consider complaints from Non-Resident Indians having accounts in India
- C.The orders passed by the Banking Ombudsman are final and binding on the parties concerned
- D.The service provided by the Banking Ombudsman is free of any fee
▶ Answer & Explanation
Correct answer: C. The orders passed by the Banking Ombudsman are final and binding on the parties concerned
The Banking Ombudsman scheme allows customers to seek resolution for complaints regarding deficiency in banking services. While the Ombudsman's recommendations are generally binding, they are not absolute. Appeals against the Ombudsman's decision can be made to the Appellate Authority appointed by the Reserve Bank of India, which is usually the Deputy Governor of RBI. Therefore, the orders are not always final and binding without recourse.
Source: UPSC gs1 2010