Banking & Finance MCQs - 2026-07-14

When acknowledging a customer's grievance, banks are required to provide a unique complaint registration number for tracking purposes and inform the customer about the expected timeline for resolution, as per the 2026 guidelines. This enhances transparency and customer experience.

The Chief Grievance Redressal Officer (CGRO) is responsible for overseeing the bank's internal grievance redressal machinery, ensuring that complaints are handled efficiently and resolved within the stipulated timelines, and acting as a point of escalation within the bank.

The RBI's updated guidelines stipulate that banks must resolve customer grievances within 30 days of receiving the complaint. If the bank fails to do so, the customer has the right to escalate the matter to the Banking Ombudsman.

While the RBI framework prohibits practices like charging exorbitant upfront fees, automatic credit limit increases, and unauthorized data sharing, it does not mandate or prohibit the use of specific payment gateways. Lenders have flexibility in choosing payment channels as long as they are secure and transparent.

The RBI's enhanced framework requires digital lending apps to provide a Key Fact Statement (KFS) to the borrower before the loan agreement is signed. This KFS contains all essential information about the loan, including costs, terms, and conditions.

The enhanced framework mandates lenders to disclose the all-in-cost of loans, including all fees and charges, upfront to the borrower and obtain their explicit consent before disbursing the loan. This ensures transparency and protects consumers from hidden charges.