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25 June 2017

RBI recently expanded the scope of Banking Ombudsman Scheme, 2006. In this context, consider the following statements:

I. The pecuniary jurisdiction of the Banking Ombudsman to pass an award has been doubled to Rs 20 lakh from Rs.10 lakh.

II. Compensation not exceeding Rs 2 lakh can also be awarded by the Ombudsman to the complainant for loss of time.

Choose the correct option

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  • a
  • b
  • c
  • d

OOPS, your answer is incorrect

The statement II is incorrect because the compensation not exceeding Rs 1 lakh can be awarded by the Ombudsman to the complainant for loss of time. Besides, a customer can now lodge a complaint against the bank for its non-adherence to RBI instructions with regard to mobile banking/ electronic banking services in India. Further, the scope has been widened to include, inter alia, deficiencies arising out of sale of insurance, mutual fund, and other third-party investment products by banks.

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