Consider the following statements regarding Banking Ombudsman 1 It is a mechanism cre...........

Economic Affairs Types of Banks and Banking

Consider the following statements regarding Banking Ombudsman:

1. It is a mechanism created by the RBI to address the complaints raised by bank customers.

2. The banking ombudsman has authority to pass an award of Rs20 lakh.

3. The ombudsman can also give a consumer up to Rs 5 lakh as compensation for loss of time, expenses incurred and mental anguish suffered during fighting the case

Which of the above statements are correct?

1 and 2 only

2 and 3 Only

1,2 and 3

1 and 3 Only

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Explanation:

3rd statement is incorrect i.e. The ombudsman can also give a consumer up to Rs 5 lakh as compensation for loss of time, expenses incurred and mental anguish suffered during fighting the case.
The amount, if any, to be paid by the bank to the complainant by way of compensation for any loss suffered by the complainant is limited to the amount arising directly out of the act or omission of the bank or Rs 10 lakhs, whichever is lower.