Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: | Priority Sector, Consumer Protection & Digital Lending

Q135: What action must a Credit Institution (CI) take if it rejects a customer's request for data correction?

A
Inform the customer of the reasons for the rejection.
B
Forward the request directly to the RBI Ombudsman.
C
Delete the disputed information from the customer's file.
D
Charge the customer a fee for a manual review.
✅ Correct Answer: A
The correct answer is A. If a CI rejects a customer's formal request for data correction, it is legally bound to transparently inform the customer of the specific reasons for the rejection.
This allows the customer to understand the deficiencies in their claim and potentially gather better evidence.
Deleting data arbitrarily or charging fees for manual reviews in this context violates customer service protocols.