Module: | Priority Sector, Consumer Protection & Digital Lending
Q113: Which of the following statements accurately describes the operational boundaries and provisions for temporary arrangements regarding the Internal Ombudsman (IO)?
1. The office of the IO is explicitly prohibited from handling complaints received directly from complainants or the public.
2. In a rare case where both the IO and Deputy IO are absent, the bank may appoint a temporary IO for a period not exceeding one month.
3. A temporary IO must be a serving official, equivalent to the rank of General Manager.
4. During the temporary tenure, the official acts as the IO and shall not have any reporting relationship with business verticals.
2. In a rare case where both the IO and Deputy IO are absent, the bank may appoint a temporary IO for a period not exceeding one month.
3. A temporary IO must be a serving official, equivalent to the rank of General Manager.
4. During the temporary tenure, the official acts as the IO and shall not have any reporting relationship with business verticals.
✅ Correct Answer: D
The correct answer is Option D. The Internal Ombudsman is designed as an appellate-level reviewer, not a front-line grievance desk; therefore, the directions explicitly forbid the IO from handling complaints received directly from the public.
To ensure continuity during unforeseen absences (where both the IO and Dy.
IO are unavailable), the bank may appoint a temporary IO.
This arrangement is strictly regulated: it cannot exceed one month, the appointee must hold the rank of General Manager (maintaining the seniority standard), and to preserve independence, this acting official must sever all reporting relationships with business verticals for the duration of the temporary assignment.
Business verticals are the profit-generating divisions of a bank, such as retail banking, corporate credit, or treasury, which are often the source of customer complaints.
A conflict of interest would arise if the temporary Ombudsman continued to report to a business head whose department's complaints they were supposed to review impartially.
The prohibition on direct public complaints ensures that the bank's internal resolution mechanisms are fully exhausted before the Ombudsman intervenes.
This structure filters out routine queries and allows the IO to focus only on complex or disputed cases that the bank intends to reject.
The one-month cap on temporary appointments prevents banks from evading the requirement to hire a full-time, independent external candidate.
The rank of General Manager is mandated even for temporary roles to ensure the officer has sufficient authority to question decisions made by other senior bank executives.
To ensure continuity during unforeseen absences (where both the IO and Dy.
IO are unavailable), the bank may appoint a temporary IO.
This arrangement is strictly regulated: it cannot exceed one month, the appointee must hold the rank of General Manager (maintaining the seniority standard), and to preserve independence, this acting official must sever all reporting relationships with business verticals for the duration of the temporary assignment.
Business verticals are the profit-generating divisions of a bank, such as retail banking, corporate credit, or treasury, which are often the source of customer complaints.
A conflict of interest would arise if the temporary Ombudsman continued to report to a business head whose department's complaints they were supposed to review impartially.
The prohibition on direct public complaints ensures that the bank's internal resolution mechanisms are fully exhausted before the Ombudsman intervenes.
This structure filters out routine queries and allows the IO to focus only on complex or disputed cases that the bank intends to reject.
The one-month cap on temporary appointments prevents banks from evading the requirement to hire a full-time, independent external candidate.
The rank of General Manager is mandated even for temporary roles to ensure the officer has sufficient authority to question decisions made by other senior bank executives.