Guidelines will be notified by January-end: RBI
With digital transactions growing rapidly 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. Currently, Ombudsman is working to resolve Customer’s issues related to Standardized Banks.
The banking regulator on Wednesday announced that there is an emerging need for a dedicated, cost-free and hastle free grievance redressal mechanism for boosting consumer confidence, and that the guidelines and details of the scheme would be notified by the end of January 2019.
“The Reserve Bank’s desires to build a cash-less society and has observed a significant rise in volumes, value and channels for conducting digital transactions. For increasing the level of trust and customer confidence in this powerful channel that has vast 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.
Plans regarding the Scheme
The members of the Payment Council of India (PCI), a body representing companies in payments and settlement system, have welcomed RBI’s decision. Its chairman, Vishwas Patel, told to one of the leading News channel 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.
Source: The Hindu (Business Line)
Author: Arindam Saha