Now, Ombudsman for Digital Transactions as Well
Moneylife Digital Team 05 December 2018
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. India is one of the few countries to have separate ombudsmen for digital transactions.
 
The Reserve Bank of India (RBI) says it will implement an ‘Ombudsman Scheme for Digital Transactions’ covering services provided by entities falling under RBI's regulatory jurisdiction. The scheme will be notified by the end of January 2019.
 
The number of complaints related to digital transactions, and deficiencies in mobile banking, rose to as high as 28%, as of June 2018, of the total number of grievances with the RBI. Complaints relating to the digital mode of financial transactions accounted for just about 19% during the financial year ended March 2017, according to the central bank.
 
The Ombudsman scheme provides cost-free complaint redressal mechanism about deficiency in services by financial services provider. 
 
Last year, the RBI has reviewed its banking ombudsman scheme to include mis-selling and complaints relating to internet and mobile banking as valid grounds of complaints. However, with increase in digital transactions as well as customer grievances, there was a need for separate Ombudsman to help customers get speedy justice.
 
Limiting Customer Liability Extended to Prepaid Instruments
 
The RBI has also decided to bring customer of prepaid payment instruments (PPIs) under limited liability. 
 
Earlier, RBI had issued instructions on limiting customer liability in respect of unauthorised electronic transactions involving banks and credit card issuing non-banking financial companies (NBFCs). 
 
"As a measure of consumer protection, it has been decided to bring all customers up to the same level with regard to electronic transactions made by them and extend the benefit of limiting customer liability for unauthorised electronic transactions involving PPIs issued by other entities not covered by the extant guidelines on the subject. The guidelines will be issued by the end of December 2018," RBI added.
 
Comments
Harish
6 years ago
The need of the hour is to first improve the system of non-digital ombudsman so that public do not have to wait endlessly for progress of their cases. Adopting simple courtseys like replying to status seeking queries will be a good beginning.
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