- Date : 29/04/2019
- Read: 2 mins
Data released by the Reserve Bank of India earlier this week highlights the complaints from consumers in the digital transaction and card payment space
The annual report on the Banking Ombudsman Scheme for 2017-18 reveals that 22% of the complaints were related to banks non-compliance with the ‘fair practice code’ while Debit card and ATM-related issues made up 15% of the total complaints and Credit Card and online banking issues constituted 7.7% and 5.2%, respectively. All digital channels combined, the total share of complaints almost touched 30% of the total issues reported.
What do the numbers say?
In absolute number terms, there were about 24,000 issues reported related to Debit cards, about 12,000 issues pertaining to Credit cards and 8,500 issues concerning the internet and mobile banking.
These numbers have significantly escalated when compared to data from 2016-17. In the previous year, 12% of the issues were related to Debit card and ATM transactions, while problems related to Credit cards were at 6.4%. Data related to internet and mobile banking platforms was not available as these categories were only added to the list in the last financial year.
Related: How digital payment methods are changing the face of the Indian economy
What are the issues?
The RBI clarified the nature of complaints stating that about 60% of the issues relating to Debit cards and ATMs were regarding the cash dispensing machines inability to give out funds despite the account of the customer being debited. With respect to Credit cards, a majority of the complaints revolved around improper billing, delayed reporting and other issues.
Related: RBI sets up standard compensation process for all payment systems
What is the way forward?
As digital transactions gain traction across India, RBI expects the complaints emanating from the digital space to become a significant area of concern. Keeping that in mind, it has announced the constitution of a separate Ombudsman to just address issues from the digital transacting space. The RBI will draft the constitution after taking inputs from industry experts and in consultation with various stakeholders across the digital payment ecosystem. Take this quiz to know how smart are you with digital payments.
The annual report on the Banking Ombudsman Scheme for 2017-18 reveals that 22% of the complaints were related to banks non-compliance with the ‘fair practice code’ while Debit card and ATM-related issues made up 15% of the total complaints and Credit Card and online banking issues constituted 7.7% and 5.2%, respectively. All digital channels combined, the total share of complaints almost touched 30% of the total issues reported.
What do the numbers say?
In absolute number terms, there were about 24,000 issues reported related to Debit cards, about 12,000 issues pertaining to Credit cards and 8,500 issues concerning the internet and mobile banking.
These numbers have significantly escalated when compared to data from 2016-17. In the previous year, 12% of the issues were related to Debit card and ATM transactions, while problems related to Credit cards were at 6.4%. Data related to internet and mobile banking platforms was not available as these categories were only added to the list in the last financial year.
Related: How digital payment methods are changing the face of the Indian economy
What are the issues?
The RBI clarified the nature of complaints stating that about 60% of the issues relating to Debit cards and ATMs were regarding the cash dispensing machines inability to give out funds despite the account of the customer being debited. With respect to Credit cards, a majority of the complaints revolved around improper billing, delayed reporting and other issues.
Related: RBI sets up standard compensation process for all payment systems
What is the way forward?
As digital transactions gain traction across India, RBI expects the complaints emanating from the digital space to become a significant area of concern. Keeping that in mind, it has announced the constitution of a separate Ombudsman to just address issues from the digital transacting space. The RBI will draft the constitution after taking inputs from industry experts and in consultation with various stakeholders across the digital payment ecosystem. Take this quiz to know how smart are you with digital payments.
