With reference to the institution of Banking Ombudsman in India, which one of the statement is not correct?

Statements (1), (2) and (4) are correct: the Banking Ombudsman is appointed by the Reserve Bank of India and the Scheme covers complaints from any person including NRIs with bank accounts in India [1]. The service is intended as a free and expedited alternative to court proceedings, i.e., no fee for filing complaints under the Scheme. Statement (3) is not correct because awards by the Banking Ombudsman, though binding on the bank and to be complied with within a stipulated period, are subject to review — aggrieved parties can file an appeal to the designated Appellate Authority under the Scheme (Deputy Governor of the RBI), so the Ombudsman’s orders are not absolutely final and unchallengeable.

Sources

1. [1] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 8: Financial Market > M India's Efforts for Financial Inclusion > p. 239