RBI for Online Dispute Resolution System in Digital Payments
IANS 06 August 2020
In a major development for digital payment services, the Reserve Bank of India (RBI) has decided that payment system operators (PSOs) will have to implement online dispute resolution (ODR) systems in a phased manner.
The RBI has said that, to begin with, authorised PSOs shall be required to implement ODR systems for failed transactions in their respective payment systems. Based on the experience gained, ODR arrangements will be extended to other types of disputes and grievances.
As the number of digital transactions rise significantly, there is a concomitant increase in the number of disputes and grievances.
"Recourse to technology driven redressal mechanisms that are rule-based, transparent and involve minimum (or no) manual intervention is necessary to deal with them in a timely and effective manner. Accordingly, the Reserve Bank shall require Payment System Operators (PSOs) to introduce Online Dispute Resolution (ODR) Systems in a phased manner," RBI's statement on developmental and regulatory policies said.
Further, the central bank has also proposed to allow a pilot scheme for small value payments in off-line mode with built-in features for safeguarding interest of users, liability protection, among others.
It noted that there has been considerable growth in digital payments using mobile phones, cards, wallets, etc. However, lack of Internet connectivity or low speed of Internet, especially in remote areas, is a major impediment in adoption of digital payments.
Against this backdrop, providing an option of off-line payments through cards, wallets and mobile devices is expected to further the adoption of digital payments. RBI has been encouraging entities to develop off-line payment solutions.
"Based on experience gained, detailed guidelines for roll-out of the scheme will be announced in due course," said the statement.
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1 year ago
Good Move
Ramesh Popat
1 year ago
Too late ..and slow start..!
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