Module: | Priority Sector, Consumer Protection & Digital Lending
Q112: Consider the following statements regarding the reporting lines and administrative governance of the Internal Ombudsman (IO) office, and select the correct option.
1. Reporting Matrix: The IO reports administratively to the Competent Authority (Head of Customer Service Vertical), and functionally to the Customer Service Committee of the Board.
2. Vacancy Protocol: In case of a vacancy due to resignation or death, the bank must inform the Reserve Bank of India within 10 working days.
3. Location: The office of the IO is preferably placed in the Head Office or Corporate Office of the bank.
4. Support: The bank is mandated to provide necessary officers, staff, and information technology support to the IO.
2. Vacancy Protocol: In case of a vacancy due to resignation or death, the bank must inform the Reserve Bank of India within 10 working days.
3. Location: The office of the IO is preferably placed in the Head Office or Corporate Office of the bank.
4. Support: The bank is mandated to provide necessary officers, staff, and information technology support to the IO.
✅ Correct Answer: D
The correct answer is Option D. The directions establish a dual-reporting structure to balance operational support with functional autonomy: the IO reports administratively to the Competent Authority (specifically the Head of the Customer Service Vertical) for resources but functionally to the Customer Service Committee (CSC) of the Board for oversight.
Infrastructure requirements mandate that the bank provide necessary staff and IT support, with the office preferably located at the Head Office or Corporate Office.
Regarding contingencies, if a vacancy arises due to reasons beyond control (like death or resignation), the bank is strictly obligated to inform the Reserve Bank of India within 10 working days from the date of such vacancy.
Administrative reporting involves routine matters such as leave approval, salary disbursement, and logistical requirements, which are managed by the bank’s executive management.
Functional reporting refers to the oversight of the actual work performance, decision quality, and case outcomes, which is reserved for the Board Committee to ensure neutrality.
The Head Office is the central administrative hub of a bank where top management and core departments are situated, facilitating easier access for the Ombudsman to relevant files and officials.
Locating the IO at the Head Office prevents isolation and ensures high-level visibility for the grievance redressal function.
The 10-day reporting window for vacancies allows the regulator to monitor gaps in the grievance mechanism and intervene if a bank delays filling the critical post.
Providing independent staff and IT access ensures that the IO is not dependent on the very departments they are auditing for basic operational needs.
Infrastructure requirements mandate that the bank provide necessary staff and IT support, with the office preferably located at the Head Office or Corporate Office.
Regarding contingencies, if a vacancy arises due to reasons beyond control (like death or resignation), the bank is strictly obligated to inform the Reserve Bank of India within 10 working days from the date of such vacancy.
Administrative reporting involves routine matters such as leave approval, salary disbursement, and logistical requirements, which are managed by the bank’s executive management.
Functional reporting refers to the oversight of the actual work performance, decision quality, and case outcomes, which is reserved for the Board Committee to ensure neutrality.
The Head Office is the central administrative hub of a bank where top management and core departments are situated, facilitating easier access for the Ombudsman to relevant files and officials.
Locating the IO at the Head Office prevents isolation and ensures high-level visibility for the grievance redressal function.
The 10-day reporting window for vacancies allows the regulator to monitor gaps in the grievance mechanism and intervene if a bank delays filling the critical post.
Providing independent staff and IT access ensures that the IO is not dependent on the very departments they are auditing for basic operational needs.