Question 1
The "Integrated Ombudsman Scheme, 2021" launched by RBI adopts which approach for grievance redressal?
View Explanation
The Integrated Ombudsman Scheme, 2021 integrates the three existing schemes (Banking Ombudsman, NBFC Ombudsman, and Digital Transactions Ombudsman) into a single centralized scheme, adopting the "One Nation One Ombudsman" approach to make the grievance redressal mechanism simpler and more responsive.
Question 2
The SARFAESI Act, 2002 empowers banks to enforce security interest without the intervention of the court. However, it does NOT apply to:
View Explanation
Section 31(i) of the SARFAESI Act explicitly excludes "any security interest created in agricultural land" from its purview to protect farmers.
Question 3
If a customer is not satisfied with the decision of the Banking Ombudsman, they can appeal to the:
View Explanation
Under the Integrated Ombudsman Scheme, the Appellate Authority is the Executive Director in charge of the Consumer Education and Protection Department of RBI (Note: Earlier it was Deputy Governor, recently designated to ED level, but often referred to as Appellate Authority within RBI).
Question 4
Asset Reconstruction Companies (ARCs) acquire NPAs from banks. What is the minimum Net Owned Fund (NOF) requirement for an ARC to commence business (revised as per RBI 2022 guidelines)?
View Explanation
RBI raised the minimum Net Owned Fund requirement for ARCs from ?100 crore to ?300 crore to ensure they have sufficient financial strength to acquire distressed assets.
Question 5
Section 24 of the Banking Regulation Act, 1949 deals with which mandatory requirement for banks?
View Explanation
Section 24 mandates that every banking company shall maintain in India, liquid assets (cash, gold, or unencumbered approved securities) valued at a price not exceeding the current market price, an amount not less than a prescribed percentage of its total Demand and Time Liabilities.
Question 6
The Marginal Cost of Funds based Lending Rate (MCLR) replaced which system for pricing loans?
View Explanation
MCLR replaced the Base Rate system in April 2016 to ensure better transmission of RBI rate cuts to borrowers. (Note: EBLR has now replaced MCLR for new retail/MSME loans).
