With reference to the institution of Banking Ombudsman in India, consider the following statements:
1. The Banking Ombudsman is appointed by the concerned bank.
2. Only Scheduled Commercial Banks are covered under the Banking Ombudsman Scheme.
Which of the statement(s) given above is/are correct?
Both 1 and 2
Neither 1 nor 2
The Banking Ombudsman Scheme was introduced under Section 35 A of the Banking Regulation Act, 1949 by RBI with effect from 1995. Currently, Banking Ombudsman Scheme introduced in 2006 is in operation. The Banking Ombudsman is a senior official appointed by the Reserve Bank of India to redress customer complaints against deficiency in certain banking services. All Scheduled Commercial Banks, Regional Rural Banks and Scheduled Primary Co-operative Banks are covered under the Banking Ombudsman Scheme.