With Higher Than Ever Digitisation Amongst Indians, RBI Comes Up With Solution To Handle Increasing Consumer Complaints

India’s banking regulator, the Reserve Bank of India (RBI), is in the process of setting up an Ombudsman to handle complaints related to the digital payments space, as reported by The Economic Times (ET). This complaints redressal mechanism will likely be set up by March and will help relieve the load off the current banking ombudsman.

“We could have these offices set up by early next year. The central bank is working on creating a scheme and it should function very similar to the banking ombudsman,” said one of the bankers with knowledge of the matter to ET. The RBI had also highlighted the need to have a digital payments ombudsman in its annual report released this year. “The large number of prepaid payment instruments issued by banks and non-bank issuers” and “increasing volume of complaints involving digital payments” were cited as reasons for the same.

India’s digital payments space has been witnessing explosive growth in the past few years. Even the government has initiated several technologies and schemes to facilitate to move to a cashless economy. UPI (Unified Payments Interface) recently crossed the Rs.75,000 crores mark in transaction value in a single month. According to Credit Suisse, digital transactions in India will become $1 trillion opportunity by 2023. Also, it was reported that due to the success of the Jan Dhan Yojana scheme, India now has 1 billion debit cards.

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