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Online Dispute Resolution For Digital Payments To Be Introduced

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On 6 August, the Reserve Bank of India (RBI) announced the introduction of an online dispute resolution (ODR) mechanism for digital payments. The central bank has also cleared a scheme for retail payments in offline mode using cards and mobile devices.

Online Dispute Resolution For Digital Payments To Be Introduced
 

"A scheme of retail payments in offline mode using cards and mobile devices, and a system of on online dispute resolution (ODR) mechanism for digital payments will also be introduced," said RBI governor Shaktikanta Das in a statement following the Monetary Policy Committee (MPC) meeting.

The central bank has called for Payment System Operators (PSOs) to introduce Online Dispute Resolution (ODR) Systems in a phased manner. To begin with, authorised PSOs shall be required to implement ODR systems for failed transactions in using various digital modes of payments like net banking, e-wallets etc in their respective Payment Systems.

RBI observed that recourse to technology-driven redressal mechanisms that are rule-based, transparent and involve minimum or no manual intervention is necessary to deal with them in a timely and effective manner.

It had already launched the Ombudsman Scheme for Digital Transactions in 2019. In the same year a committee headed by non-executive chairman of Infosys, Nandan Nilekani had suggested various measures to boost digital payments in the country, including an online dispute resolution systems to handle complaints. Other suggestions were elimination of charges, round the clock RTGS and NEFT facility and duty-free import of point-of-sales machines.

RBI's MPC kept the repo rate unchanged at 4 percent and maintained an accomodative stance.

Read more about: digital payments rbi
Story first published: Thursday, August 6, 2020, 15:44 [IST]
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