Reserve Bank of India launches Ombudsman Scheme for Digital Transactions

The Reserve Bank of India has launched the Ombudsman Scheme for Digital Transactions (OSDT) for redressal of complaints. The intention of launching such a scheme was first announced in the Monetary Policy Statement of December 5, 2018.

The scheme, launched under Section 18 of the Payment and Settlement Systems Act, 2007, will provide a free-of-cost and expeditious complaint redressal mechanism relating to deficiency in customer services in digital transactions conducted through non-bank entities regulated by RBI. Complaints relating to digital transactions conducted through banks will continue to be handled under the Banking Ombudsman Scheme.

“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,” read RBI’s monetary policy statement of December 5, 2018.

The offices of Ombudsman for Digital Transactions will function from the existing 21 offices of the Banking Ombudsman and will handle complaints of customers from their respective territorial jurisdiction.

The Scheme provides for an Appellate mechanism under which the complainant or System Participant has the option to appeal against the decision of the Ombudsman before the Appellate Authority.

The complete Scheme is available on RBI’s website [https://rbidocs.rbi.org.in/rdocs/Content/PDFs/OSDT31012019.pdf]