RBI sets up standard compensation process for all payment systems

RBI to implement Compensation and complaint addressal framework this year with a separate digital ombudsman in place. Read more

RBI sets up standard compensation process for all payment systems

The Reserve Bank of India has decided to put in place a customer complaint addressal turnaround time (TAT) and a compensation system for all authorised payment systems. This will be effective by the end of June 2019. The purpose of this move is to address the constant need among users of e-wallets, UPIs and authorised prepaid payments. These new payment platforms have been widely popular in recent times but customers have been facing problems related to failed transactions, non-receiving of cashback offers etc.

The RBI statement said the need for deciding a TAT for resolution of customer complaints and chargebacks and facilitating a compensation framework. Presently there is no specific time frame or compensation slab among these various payment platforms. A separate ombudsman to address complaints regarding digital payments was first decided last December and it is expected to retain customer reliance on digital platforms to a great extent. A similar ombudsman scheme for banking was introduced by the RBI in 2006.

Related: How Unified Payment Interface (UPI) can change the way you bank 

How does the digital platform complaint work?

Customers can file a complaint against prepaid instruments, e-wallets and other payment services in 21 locations across 19 cities. Driven by the Banking Codes and Standards Board of India, the digital ombudsman is expected to reduce the delay and differences in customer complaint resolution. All you need to do is to lodge your complaint with the service provider and wait for 30 days. If unsatisfied, you can write to the ombudsman within one year from the date of rejection or 13 months from filing of the complaint. If still not satisfied, you can further appeal to the appellate authority, being the office of the deputy governor in charge of RBI’s department for overseeing the ombudsman. The next resort would be to file a case in consumer forums and courts.

What are the conditions/preconditions for filing a complaint?

You will have to file the complaint with the ombudsman under whose jurisdiction the service provider is located. In the case of centralised operations, this will be determined by your billing address. You can also file a complaint online. You have to retain all records and documentary proofs for the ombudsman to entertain your complaint. The ombudsman doesn’t entertain complaints which are already filed with some other forum. It also checks the eligibility of your complaint before taking it up. You have to stick to the time period defined for filing a complaint with the ombudsman.

Related: This Gudi Padwa RBI offers an incentive to homebuyers with repo rate cut

How will users of digital platform benefit from this decision?

With this mechanism in place, you will be able to file a complaint against issues like suspicious fund transfers, difficulty in fund transfers, failure to load funds into an account or make a transfer, failure to make a refund or stop payment instructions etc. This will cover almost all the major problems faced by digital payment platform users presently.

What are the compensation limits for digital grievances?

A compensation of Rs. 1 lakh can be awarded for the loss of customer’s time, expenses incurred by the customer and mental agony. The maximum compensation that can be awarded by the digital payments ombudsman is Rs. 20 lakh. See how digital payment methods are changing the face of the Indian economy.



Related Article

Premium Articles