Module: | Priority Sector, Consumer Protection & Digital Lending
Q92: Which of the following statements, regarding the functions and restrictions of an "Administrative Office" or "Controlling Office" of a bank, are correct?
1. It is permitted to carry out general banking and business transactions.
2. It exercises control or oversight functions on units falling under its jurisdiction.
3. It includes internal administrative functions such as the oversight of the bank's own staff.
4. It is permitted to have direct interface with customers for grievance redressal.
2. It exercises control or oversight functions on units falling under its jurisdiction.
3. It includes internal administrative functions such as the oversight of the bank's own staff.
4. It is permitted to have direct interface with customers for grievance redressal.
✅ Correct Answer: B
The correct answer is B. Statements 2 and 3 are correct.
Under the RBI's Branch Authorisation framework, an "Administrative Office" or "Controlling Office" (such as a Zonal Office, Regional Office, or Head Office) is strictly designed to exercise control, oversight, and internal administrative functions over the banking units falling under its jurisdiction.
Statement 1 is explicitly incorrect because these offices are strictly prohibited from carrying out any general banking, commercial, or business transactions.
Statement 4 is also incorrect; regulatory guidelines mandate that Administrative Offices must not have any direct interface with customers, not even for direct grievance redressal, as customer-facing activities are restricted to authorized Banking Outlets.
Therefore, Options A, C, and D are factually incorrect.
Under the RBI's Branch Authorisation framework, an "Administrative Office" or "Controlling Office" (such as a Zonal Office, Regional Office, or Head Office) is strictly designed to exercise control, oversight, and internal administrative functions over the banking units falling under its jurisdiction.
Statement 1 is explicitly incorrect because these offices are strictly prohibited from carrying out any general banking, commercial, or business transactions.
Statement 4 is also incorrect; regulatory guidelines mandate that Administrative Offices must not have any direct interface with customers, not even for direct grievance redressal, as customer-facing activities are restricted to authorized Banking Outlets.
Therefore, Options A, C, and D are factually incorrect.