Module: | Priority Sector, Consumer Protection & Digital Lending
Q136: Which of the following statements regarding Root Cause Analysis (RCA) and algorithm reviews are correct?
1. CIs must undertake RCA of customer grievances at least on a half-yearly basis.
2. CIs must undertake RCA of customer grievances at least on an annual basis.
3. CICs must conduct a periodic review of their 'Search & Match' logic algorithm at least on a half-yearly basis.
4. CICs must conduct a periodic review of their 'Search & Match' logic algorithm at least on an annual basis.
Which of the statements given above is/are correct?
2. CIs must undertake RCA of customer grievances at least on an annual basis.
3. CICs must conduct a periodic review of their 'Search & Match' logic algorithm at least on a half-yearly basis.
4. CICs must conduct a periodic review of their 'Search & Match' logic algorithm at least on an annual basis.
Which of the statements given above is/are correct?
✅ Correct Answer: A
The correct answer is A. To proactively identify and eliminate systemic errors, Credit Institutions (CIs) are required to undertake a Root Cause Analysis (RCA) of recurring customer grievances at least on a half-yearly basis.
Similarly, on the technical side, Credit Information Companies (CICs) must conduct a periodic review of their critical 'Search & Match' logic algorithm at least on a half-yearly basis to ensure borrower identities are accurately mapped.
Therefore, statements 1 and 3 are correct, while the annual timelines in statements 2 and 4 are incorrect.
Similarly, on the technical side, Credit Information Companies (CICs) must conduct a periodic review of their critical 'Search & Match' logic algorithm at least on a half-yearly basis to ensure borrower identities are accurately mapped.
Therefore, statements 1 and 3 are correct, while the annual timelines in statements 2 and 4 are incorrect.