Grievance Redressal & RBI Integrated Ombudsman Scheme 2021 | PAPER II – PRINCIPLES & PRACTICES OF BANKING | MODULE A: GENERAL BANKING OPERATIONS

Banker-Grievance Redressal & RBI Integrated Ombudsman Scheme 2021

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1. Banker-Grievance Redressal

Banks are required to put in place an effective grievance redressal mechanism to ensure customer complaints are addressed promptly and fairly. Transparency, accountability, and ease of access are key components. The system includes internal complaint redressal channels and escalation mechanisms, culminating in the option to approach the RBI Ombudsman.

2. Model Policy on Grievance Redressal

The model policy outlines a structured approach to complaint handling:

• Customer-friendly procedures for lodging complaints
• Defined timelines for resolution
• Dedicated grievance redressal officers
• Escalation matrix up to senior management
• Periodic review of complaints and improvements

3. Internal Machinery to Handle Customer Complaints/Grievances

Banks maintain an internal framework to handle complaints:

• Branch-level complaint registers and officers
• Grievance Redressal Officers at regional/zonal levels
• Nodal Officer at Head Office level
• Review by Customer Service Committees and Board-level committees

4. The RBI - Integrated Ombudsman Scheme 2021

Launched on 12 November 2021, this scheme integrates earlier ombudsman schemes into one. Key features include:

• ‘One Nation One Ombudsman’ approach
• Centralized receipt and processing of complaints via the CMS portal
• No need to identify the scheme or ombudsman jurisdiction
• Grounds for rejection are fewer and more customer-friendly
• Includes NBFCs and payment system operators under one umbrella

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Multiple Choice Questions (MCQs)

1. What is the main objective of the RBI Integrated Ombudsman Scheme 2021?
   A. Promote investment in banking
   B. Integrate customer grievance redress mechanisms
   C. Improve credit facilities
   D. Simplify KYC norms
   Answer: B
2. Who is responsible for grievance redressal at the branch level in banks?
   A. Branch Manager
   B. Customer
   C. RBI Official
   D. Nodal Officer
   Answer: A
3. The RBI Integrated Ombudsman Scheme was launched on:
   A. January 1, 2020
   B. July 15, 2019
   C. November 12, 2021
   D. March 31, 2022
   Answer: C
4. What platform is used for lodging complaints under the Integrated Scheme?
   A. Paytm
   B. BHIM App
   C. RBI CMS Portal
   D. Google Forms
   Answer: C
5. Which of the following is not a component of the Model Grievance Redressal Policy?
   A. Defined timelines
   B. Escalation matrix
   C. Audit committee
   D. Periodic review
   Answer: C
6. The Ombudsman Scheme covers which of the following entities?
   A. Only Public Sector Banks
   B. All Banks and NBFCs
   C. Only Cooperative Banks
   D. Only Foreign Banks
   Answer: B
7. Who heads the internal grievance redressal system at the apex level in a bank?
   A. Branch Officer
   B. Customer Service Executive
   C. Nodal Officer
   D. Auditor
   Answer: C
8. Which committee in banks reviews grievance redressal performance?
   A. HR Committee
   B. Asset Committee
   C. Audit Committee
   D. Customer Service Committee
   Answer: D
9. One key change in the 2021 scheme is:
   A. Inclusion of cryptocurrencies
   B. Decentralized complaint filing
   C. Unified complaint handling for all regulated entities
   D. Bank employees' grievances
   Answer: C
10. Customers can escalate unresolved complaints to the RBI Ombudsman after:
    A. 7 days
    B. 15 days
    C. 30 days
    D. 45 days
    Answer: C

Author: Bank Theory