Module: | Priority Sector, Consumer Protection & Digital Lending
Q116: Which of the following statements is/are correct regarding the resolution timelines and communication protocols under the Internal Ombudsman (IO Scheme in banks?
1. For complaints where a specific resolution timeline is prescribed by the RBI or NPCI, the bank must auto-escalate the complaint to the IO sufficiently in advance, to allow at least 10 days for review.
2. In cases where no specific timeline is prescribed, the complaint must be auto-escalated to the IO within 20 days of receipt.
3. The final decision must be communicated to the complainant within 45 days of receiving the complaint.
4. The final reply to the complainant must explicitly state that the complaint has been reviewed by the IO, and include the URL of the RBI's Complaint Management System (CMS).
2. In cases where no specific timeline is prescribed, the complaint must be auto-escalated to the IO within 20 days of receipt.
3. The final decision must be communicated to the complainant within 45 days of receiving the complaint.
4. The final reply to the complainant must explicitly state that the complaint has been reviewed by the IO, and include the URL of the RBI's Complaint Management System (CMS).
✅ Correct Answer: B
The correct answer is Option B. Statement 1 is correct: To avoid missing statutory deadlines (like those for failed ATM transactions), if a specific timeline exists, the bank must escalate the case early enough to give the IO at least 10 days for review.
Statement 2 is correct: For all other complaints where no specific timeline is prescribed, the standard auto-escalation deadline is within 20 days of receipt.
Statement 3 is incorrect: The absolute limit for communicating the final decision to the complainant is 30 days (not 45 days) from the receipt of the complaint.
Statement 4 is correct: If the IO upholds the rejection, the bank's reply must explicitly mention the IO's review and provide the link to the RBI CMS ([https://cms.rbi.org.in
Statement 2 is correct: For all other complaints where no specific timeline is prescribed, the standard auto-escalation deadline is within 20 days of receipt.
Statement 3 is incorrect: The absolute limit for communicating the final decision to the complainant is 30 days (not 45 days) from the receipt of the complaint.
Statement 4 is correct: If the IO upholds the rejection, the bank's reply must explicitly mention the IO's review and provide the link to the RBI CMS ([https://cms.rbi.org.in