Q. What is banking ombudsman?
Banking ombudsman aims at resolution of complaints relating to services provided by banks. Banking Ombudsman Scheme is introduced under Section 35 A of the Banking Regulation Act, 1949 by RBI with effect from 1995. Banking Ombudsman is a senior official appointed by the Reserve Bank of India to address customer complaints against deficiency in banking services. All Scheduled Commercial Banks, Regional Rural Banks and Scheduled Primary Co-operative Banks are covered under the Scheme.
Q. What is a credit card and debit card?
Credit Card is a payment method that financial institutions or banks provide to customers so that they can use it to pay for goods and services without actual payment at the time of purchase. Ie this helps people to buy stuff on credit. There will be a credit limit set for each customer based on their financial history. Customers can use credit cards to buy goods and plan to re-pay to bank at a later point of time. In most of the cases, interest is not taken from customers if repayment is done before the due date. High interest rates are considered if you miss to re-pay the amount before due date.
On contrary, debit cards usually help people to access only the balance available on their accounts. Debit cards draw money directly from your account when you make the purchase. The card can be used instead of using cash while purchases are done.