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RBI opens grievance redressal window for digital transactions

The Reserve Bank of India today launched the Ombudsman Scheme for Digital Transactions (OSDT) for redressal of complaints against non-bank entities.

It covers prepaid payment instruments, mobile or electronic fund transfers, Unified Payments Interface (UPI), Bharat Bill Payment System (BBPS), Bharat QR Code and UPI QR Code.

The scheme will provide a cost-free and expeditious complaint redressal mechanism for customers. They can report any deficiencies in customer services in digital transactions conducted through non-bank entities that come under RBI’s supervision.

As per the scheme, RBI will appoint one or more of its officers in the rank of Chief General Manager or General Manager to be known as “Ombudsman for Digital Transactions” for a period not exceeding three years at a time.

The scheme provides for an Appellate mechanism under which the complainant and the non-bank entity has the option to appeal against the decision of the Ombudsman before the Appellate Authority.

“With the digital mode for financial transactions gaining traction in the country, there is an emerging need for a dedicated, cost-free and expeditious grievance redressal mechanism for strengthening consumer confidence in this channel. It has therefore been decided to implement an ‘Ombudsman Scheme for Digital Transactions’ covering services provided by entities falling under Reserve Bank’s regulatory jurisdiction,” the banking regulator had said in the Monetary Policy Statement on 5 December.

For digital transactions conducted through banks, complaints will continue to be handled under the Banking Ombudsman Scheme.

RBI said that offices of OSDT will function from the existing 21 offices of the Banking Ombudsman and will handle complaints of customers from their respective territorial jurisdiction.

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