RBI launches ombudsman scheme for digital payments – The Economic Times

The Reserve Bank of India has launched the ombudsman scheme for digital payments, the banking regulator announced in a release today. It had first spoken about the scheme in the December 5 monetary policy statement promising to create a separate ombudsman for digital payments.

“As announced … the Reserve Bank of India (RBI) today launched the Ombudsman Scheme for Digital Transactions (OSDT)… for redressal of complaints against System Participants as defined in the said scheme,” said the regulator in a statement.

Further the regulator added that the scheme will provide free of cost redressal mechanism to grievances raised by customers for digital transactions undertaken by them through non-banking channels, like mobile wallets or tech enabled payment companies using UPI for settlements.

Transactions undertaken through the banking channels will still be managed by the banking ombudsman.

Laying out the jurisdiction of the functioning, the RBI said that the new ombudsman will start working from the 21 existing offices of the Banking Ombudsman and work within the existing territorial jurisdictions.

In November 8 edition ET had first reported that the RBI could establish a digital payments ombudsman, keeping in mind the massive adoption of digital payments in the country and the magnitude of complaints regarding problems incurred during those transactions.

“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,” said the RBI in the December monetary policy statement.

via RBI launches ombudsman scheme for digital payments – The Economic Times

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