RBI to implement an Ombudsman scheme for digital transactions

The Reserve Bank of India (RBI) on Wednesday said that it will implement an ‘Ombudsman Scheme for Digital Transactions covering services provided by entities falling under Reserve Banks regulatory jurisdiction.

According to the central bank, the scheme will be notified by the end of January 2019.

"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," the RBI said in a statement on Developmental and Regulatory Policies.

"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."

In another customer protection initiative, the RBI said that it has issued instructions on limiting customer liability in respect of unauthorised electronic transactions involving banks and credit card issuing non-banking financial companies (NBFCs).

"As a measure of consumer protection, it has been decided to 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 unauthorised electronic transactions involving 'Prepaid Payment Instruments' (PPIs) issued by other entities not covered by the extant guidelines on the subject," the statement said.

"The guidelines will be issued by the end of December 2018."