CAIIB Paper 4 Module C Quiz 1

The customer must first complain to the regulated entity. If it rejects the complaint wholly or partly, gives an unsatisfactory reply, or does not reply within 30 days, the customer may approach the Ombudsman subject to the Scheme’s other conditions.

The Scheme provides a cost-free mechanism for resolving eligible complaints involving deficiency in service by covered regulated entities. It does not abolish courts or statutory tribunals.

The general filing window is one year from the bank’s reply; where no reply is received, it is one year and 30 days from the date of the original complaint. Scheme conditions and exceptions should be checked.

A complaint involving the same cause of action already pending before, or decided by, a court, tribunal or arbitrator may be non-maintainable under the Scheme.

The MSMED Act contains special provisions to protect micro and small suppliers against delayed payments, including statutory payment timelines and compound interest consequences.

Where a written agreement exists, the agreed period cannot exceed 45 days from the day of acceptance or deemed acceptance. If there is no agreement, the statutory appointed day rules apply.

Section 16 prescribes compound interest with monthly rests at three times the bank rate notified by RBI, from the appointed day or the day immediately following the agreed date, as applicable.

The Micro and Small Enterprises Facilitation Council (MSEFC) can take up references concerning amounts due under the MSMED Act and may conduct conciliation or refer the dispute to arbitration.

Section 19 generally requires a buyer who applies to set aside an award/decree to deposit 75% of the amount in terms of the award, subject to the statutory framework.

Section 13(2) requires a 60-day demand notice. If the borrower fails to discharge the liability within that period, the secured creditor may take measures under section 13(4), subject to statutory requirements.

Section 31 lists exclusions, including security interests created in agricultural land. Whether land qualifies as agricultural land depends on the facts and applicable law.

Under section 14, the Chief Metropolitan Magistrate or District Magistrate may assist the secured creditor in taking possession of the secured asset and related documents, subject to statutory procedure.

Section 17 provides a remedy before the Debt Recovery Tribunal for a person aggrieved by measures taken under section 13(4), within the prescribed limitation period.

SARFAESI enforcement is subject to the Act’s scope, exclusions and conditions. The NPA classification and other applicable requirements must be satisfied; it is not available for every debt or asset.

The RDB Act establishes specialised tribunals for adjudication and recovery of debts due to banks and financial institutions, with procedures intended to support efficient recovery.

Banks and financial institutions may bring recovery applications before the DRT when the claim falls within the Act’s jurisdiction and applicable threshold/provisions.

The statutory appellate forum is the DRAT, subject to the Act’s requirements, including applicable limitation and pre-deposit provisions.

The RDB Act generally provides 30 days for an appeal to DRAT from receipt of a copy of the DRT order, though delay may be condoned where legally permissible.

The Act bars civil court jurisdiction over matters that the DRT or DRAT is empowered to determine, subject to the specific statutory scheme and recognised exceptions.

For corporate persons, the National Company Law Tribunal (NCLT) is the adjudicating authority for insolvency resolution and liquidation proceedings under the IBC.