CAIIB · Banking Regulations & Business Laws · Module C — Important Acts/Laws & Legal Aspects of Banking Operations, Part B
CAIIB BRBL Unit 22 — The Consumer Protection Act, 2019: Free MCQs with Explanations
By Swarnakshi Jha (ex-banker) · Updated 29 October 2026 · Paper IV of the December 2026 cycle (Sunday 20 December 2026)
This is the free practice page for CAIIB BRBL Unit 22 — The Consumer Protection Act, 2019 (Module C — Important Acts/Laws & Legal Aspects of Banking Operations, Part B). The CAIIB Mock Centre holds 200 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five practice questions with explanations, and the traps that cost marks.
BRBL · Module C200 MCQs in the Mock Centre5 free belowPaper on 20 December
Key facts examiners test from this unit
Purpose and key definitions — the 2019 Act, in force from 20 July 2020, protects six consumer rights; a consumer buys goods or services for consideration, but not for resale or a commercial purpose.
Service, deficiency and unfair practices — banking is a 'service'; any shortfall, negligence or withheld information is a deficiency; one-sided loan terms can be unfair contracts and misleading promotion an unfair trade practice.
Councils and the Central Authority — three councils advise; the CCPA, under a Chief Commissioner in the NCR, enforces consumer rights as a class, and its orders are appealed to the National Commission within 30 days.
Changed since the textbook
Banks answer for promptly reported frauds (3 Jan 2025). In State Bank of India v. Pallabh Bhowmick, the Supreme Court declined to interfere with an order making SBI refund ₹94,204.80 of unauthorised online debits that the customer reported within 24 hours, relying on RBI's 6 July 2017 circular limiting customer liability; it said banks must remain vigilant. Source: LiveLaw
e-Jagriti for consumer complaints (1 Jan 2025). The Department of Consumer Affairs launched e-Jagriti, one platform for filing complaints, paying fees, virtual hearings and tracking cases, integrating e-Daakhil and the commissions' case systems. Source: PIB
5 free practice questions — tap an option
Five practice questions from this unit. Answers lock on the first tap, exactly as in the exam, and an explanation opens underneath. The Mock Centre has all 200 questions on this unit, from easy to tough, with caselets and key-in numericals, why every other option is wrong and the exam tip — and tracks your score and revision dates.
Question 1 of 5
Which of these is included in 'person' under the Act?
Why (d): The Act's definition of 'person' includes an individual, a firm, a Hindu undivided family, a co-operative society, an association of persons and a company, among others. (a) is wrong: Firms and others are also persons. (b) is wrong: Age is not the test for a person. (c) is wrong: Other entities are also persons.
Question 2 of 5
What did the Supreme Court tell banks in SBI v. Pallabh Bhowmick (2025)?
Why (d): The Court said banks must remain vigilant to detect and prevent unauthorised transactions, and upheld the customer's refund. (a) is wrong: The Court did the opposite. (b) is wrong: It set no refund cap. (c) is wrong: It did not ask banks to close accounts.
Question 3 of 5
A customer asks the District Consumer Protection Council to award him compensation against his bank. What should he be told?
Why (a): The councils only advise; compensation claims go to the District Consumer Disputes Redressal Commission. (b) is wrong: The State Council is also advisory. (c) is wrong: The District Council cannot award compensation. (d) is wrong: The Collector has no such power.
Question 4 of 5
Which complaints go to the National Commission under the 2021 rules?
Why (d): The 2021 rules give the National Commission complaints valued above ₹2 crore. (a) is wrong: ₹1 crore is not the threshold. (b) is wrong: The Act's figure was replaced. (c) is wrong: Values are fixed by the rules.
Question 5 of 5
Who establishes the consumer mediation cells attached to District Commissions?
Why (a): Section 74 says each State Government sets up cells attached to its District Commissions and State Commission. (b) is wrong: The Centre sets up National cells. (c) is wrong: The Collector has no role. (d) is wrong: The CCPA has no role.
0 of 5 answered.
Traps in this unit
A business borrower is not a consumer if the dominant purpose is commercial.
A mediator cannot be a complainant.
'Defect' is for goods; 'deficiency' is for services.
Practise all 200 questions on Unit 22. The free CAIIB demo opens Units 1–2 of every paper with full explanations; the BRBL Online Mock Centre unlocks all 5,800+ BRBL questions, the full-length papers with caselets and key-ins, module mocks and Smart Revision for 18 months (₹1,499).
Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. CAIIB content follows rules and developments up to IIBF's cut-off of 30 June 2026 (where a rule changed later, the update box says so); verify from official sources before relying on them in practice.