On which date, the Ombudsman Scheme for the Non-Banking Financial Companies (NBFC), 2018 was effectively introduced by Reserve Bank of India?

Question

UnlockIAS · Accepted Answer

Correct — D, 23 February 2018. The Reserve Bank of India introduced the Ombudsman Scheme for Non-Banking Financial Companies, 2018 with effect from 23 February 2018, framed under Section 45L of the RBI Act, 1934, to give customers of NBFCs a free and speedy grievance-redress mechanism. It first covered deposit-taking NBFCs and was extended in 2019 to larger non-deposit-taking NBFCs.

Why the other options are wrong — (a) Not the date the scheme took effect (26 January is Republic Day) — it commenced on 23 February 2018.  (b) Right day of the month but wrong month; the scheme came into force in February, not January 2018.  (c) Right month but wrong day — the effective date was the 23rd, not the 26th of February 2018.

Concept: The RBI runs Ombudsman schemes as free, quasi-judicial grievance-redress mechanisms for financial consumers. After the Banking Ombudsman (1995), it added the NBFC Ombudsman (2018) and the Ombudsman for Digital Transactions (2019), then merged all three into the Reserve Bank - Integrated Ombudsman Scheme (RB-IOS), 2021 under a 'One Nation One Ombudsman' approach.

State PCS 2020 Q10 — Economy PYQ with Answer

State PCS 2020 Q10 — Economy PYQ with Answer