With reference to the institution of Banking Ombudsman in India, which one of the statements is not correct?

Correct Option

The statement that the orders passed by the Banking Ombudsman are final and binding on the parties concerned is not correct. While the Banking Ombudsman issues an award, it is binding on the bank only if the complainant accepts it in full and final settlement of the complaint. Both the complainant and the bank have the right to appeal against the award to the Appellate Authority, which is a Deputy Governor of the Reserve Bank of India, if they are not satisfied with the decision.

Incorrect Options

The following statements are correct regarding the Banking Ombudsman scheme:

• The Banking Ombudsman is appointed by the Reserve Bank of India. This ensures an independent grievance redressal mechanism.
• The Banking Ombudsman can consider complaints from Non-Resident Indians (NRIs) concerning their accounts in India. This extends the consumer protection framework to NRIs.
• The service provided by the Banking Ombudsman is free of any fee. This ensures accessibility to all complainants, irrespective of their financial standing.