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The lesson notes that the BR Act, 1949 contains no specific provision for forming a formal complaint redress mechanism for depositors. The RBI therefore formulated the Banking Ombudsman Scheme by exercising powers under a specific section of the BR Act. Which section is that?
Answer & Solution
Correct answer: B.
1. The BR Act has no specific provision for a depositor-grievance forum.
2. The lesson states that the RBI formulated the Banking Ombudsman Scheme by relying on Section 35-A of the BR Act.
3. Section 22 governs banking licenses, not consumer protection.
4. Sections 10BB and 56 cover appointments and applicability to co-op societies respectively.
_Source: ICSI CS Executive Paper 7 (Economic, Business and Commercial Laws) — Lesson 1: Reserve Bank of India Act, 1934, pp. 8-21._
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