Updated By: LatestGKGS Desk
RBI Implements Ombudsman Scheme for Digital Transactions
RBI Implements Ombudsman Scheme for Digital Transactions: Details, Aim, Highlights
The Reserve Bank of India (RBI) has announced to implement ‘Ombudsman Scheme for Digital Transactions’ to provide a cost-free mechanism to redress grievances of customers related to digital transactions.
The Ombudsman Scheme for Digital Transactions will be notified by end of January 2019. It will cover services provided by entities falling under RBI’s regulatory jurisdiction.
The scheme is being implemented taking into consideration rise in digital mode for financial transactions which is gaining traction in the country.
There is an emerging need for dedicated, cost-free and expeditious grievance redressal mechanism for strengthening consumer confidence in this channel.
RBI Framework for limiting customer liability
RBI has also decided to formulate a framework for limiting customer liability in respect of unauthorized electronic payment transactions involving prepaid payment instruments (PPI).
It already has issued instructions on limiting customer liability in respect of unauthorized electronic transactions involving banks and credit card issuing non-banking financial companies (NBFCs).
This framework will 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 unauthorized electronic transactions involving PPIs issued by other entities not covered by extant guidelines. The guidelines will be issued by end of December 2018.
