Page 34 - Banking Finance April 2020

ARTICLE

The digital transaction in volume term recorded a growth(Y provider for resolution/redressal of the grievance. If
to Y) of 38.06 % during 2017-18 and 70.46% during 2018- the grievance is not redressed by the service provider
19.In value term the growth (Y to Y)is 17.51 % in 2017-18 or not replied within one month from the date of
and 20.39% in 2018-19.It is excepted that the digital complain or the complainant is not satisfied with the
transactions will increase more than4 times from Rs.2069 redressal of complain then the complainant can file a
cr in Dec-18 to Rs.8707 cr in Dec-2021. RBI also push for complain with Ombudsman of Digital Transactions
44% of debit card transaction on POS in next two years. within 12 months from the date of rejection/redressal.
Y In exceptional cases, the Ombudsman can allow to
Many non-banking entity/organization come with state of admit a complain within the limitation period under
the art technology and providing the facilities of transaction Indian Limitation Act 1963 after the expiry of 12 months
through digital platform. The main player of the digital period.
platform are Paytm,PhonePe,Google Pay,BHIM. As the
Y If the complainant file a complaint on other forum like
volume of digital transaction increases, the threat of digital court, consumer court then he/she cannot file the
fraud also increases. The number of complains, relating to
complain to Ombudsman of Digital Transactions.
fraud in digital transaction increased many fold.
Y The complain must not be relating to dispute cover
under sec.24 of Payment and Settlement Act
In the public interest and in the interest of conduct of
2007(dispute/complain between two or more service
business relating to payment gateway, it is necessary to
provide for a mechanism of speedy redressal of complaints providers).
against deficiency in services related to digital transactions. Y The complain does not relating to dispute between
In exercise of the powers conferred under Section 18 of the customers.
Payment and Settlement Systems Act, 2007, Reserve Bank Y The complain is not in vexatious or frivolous in nature.
Of India formulated & implemented Ombudsman scheme
for Digital Transactions on 31-01-2019. Basis of Complain
Y The basis of complain regarding failure/delay of service
Features provider in loading the funds in e-wallet, crediting the

Y The scheme come in force from 31-01-2019. fund in merchant's account, refund the amount within
reasonable time.
Y The Ombudsman is an officer of RBI, in the rank of Gen.
Manager/Chief Gen. Manager and appointment will be Y Non-transfer, failure to transfer the fund on instruction
for a maximum period of 3 years. of customer.
Y The office of Ombudsman of Digital Transaction is Y Non-adherence to any other instruction of RBI.
located in 21 centers across country. Y Failure in online fund transfer/credit in account.
Y Only the digital transaction complaint related to non- Y Unauthorized electronic fund transfer of customer.
banking entity are taken by Ombudsman of Digital Y Fail to follow the stop-payment instruction of customer
Transactions. in time.
Y The digital transaction relating to banking entity will Y Complain relating to UPI/Bharat Bill Payment System,
be taken by Banking Ombudsman(Gen). fall within the preview of The Ombudsman of Digital
Y The non-banking entity cannot escape from the liability Transactions.
in case the transaction enabled on third party platform.
It will be the responsibility of the payment service Procedure of filling the complain with
provider to resolve customer dispute arising out of such Ombudsman of Digital Transactions
transaction.
Y The complainant after disposal/rejection of complain by
service provider can file complain to Ombudsman of
Pre condition of filling complain Digital Transactions within 12 months of disposal /
Y The complainant must first approach the service rejection of complain by service provider.

32 | 2020 | APRIL | BANKING FINANCE