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With digital transactions growing exponentially in India, so have the complexities and challenges such as fraudulent transactions.
Hence, the Reserve Bank of India (RBI) has decided to set up an ombudsman scheme for digital transactions to address these issues and promote customer confidence.
The banking regulator, in its bi-monthly policy announcement on Wednesday, said that there is an emerging need for a dedicated, cost-free and expeditious grievance redressal mechanism for strengthening consumer confidence, and that the guidelines and details of the scheme would be notified by the end of January 2019.
“The Reserve Bank’s endeavour to build a less-cash society has facilitated a significant rise in volumes, value and channels for conducting digital transactions. For promoting the level of trust and customer confidence in this powerful channel that has wide and deep reach, a dedicated and empowered grievance redressal mechanism is a prerequisite,” said Mahesh Kumar Jain, Deputy Governor, RBI, during the conference. He further added that the scheme will be administered and funded by the RBI. It will not only cover entities falling under the central bank’s regulatory jurisdiction, but also firms that provide related services.
Hails decision
The members of the Payment Council of India (PCI), an apex body representing companies in payments and settlement system, have welcomed RBI’s decision. Its chairman, Vishwas Patel, told BusinessLine that “India has the highest number of payment options in the world. An RBI-monitored system to handle the customer complaints that is not addressed by the payment service provider, the escalation matrix, and turnaround time for complaint resolution will certainly go a long way in boosting consumer confidence in digital transactions.”
Ever since demonetisation, digital transactions, including mobile wallets and UPI, have growth three-fold as of August 2018, according to a recent data by MeiTY.
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