Financial Redressal Agency Highlights
Q. Which of the following is/are true regarding Financial Redressal Agency (FRA)?
1) FRA will try to resolve all complaints through mediation.
2) Consumers will not be able to appeal against the orders of FRA.- Published on 28 Dec 16
a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2
ANSWER: Only 1
FRA design offers a simplified resolution process, allowing retail consumers in distant and remote locations to pursue effective remedies against FSP, without imposing significant costs on them. It will try to resolve all complaints through mediation.
Cases where the parties are unable to reach a settlement would be resolved through a light-touch adjudication process. It will discourage court-like processes.
The FRA will establish a front-end presence in diverse locations for consumers to submit complaints.
Consumers will be able to appeal against the orders of FRA at Securities Appellate Tribunal (SAT). This would standardise the availability of such an independent mechanism across the financial sector.