RBI Implemented New Ombudsman Scheme for Digital Transactions

Reserve Bank of India (RBI) has announced to implement new exclusive Banking Ombudsman for Digital Transactions. In recent time multiple issues such as failed transactions or funds sent to the wrong address have forced RBI to announce the separate Banking Ombudsman for Digital Transactions. 

RBI’s ‘Statement on Developmental and Regulatory Policies’ has announced setting up of ombudsman for digital transactions.

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. It has therefore been decided to implement an ‘Ombudsman Scheme for Digital Transactions’ covering services provided by entities falling under Reserve Bank’s regulatory jurisdiction. The scheme will be notified by the end of January 2019, it said.

Digital Transaction ombudsman will have the same structures which laid out in 2006, there are various criteria on the basis of which consumers can make complaints to the ombudsman—an RBI official in the rank of chief general manager or general manager.