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Home >Industry >Banking >Digital payments to become easier: Online system for customer grievances is a must, says RBI
Once a customer has lodged the dispute or grievance, a unique reference number shall be allocated by the ODR system. Photo: iStock

Digital payments to become easier: Online system for customer grievances is a must, says RBI

  • Any entity that is setting up a payment system in the country shall arrange the ODR system at the starting of the services, the regulator directed

In a bid push a digital payment services in India, the Reserve Bank of India on Thursday introduced online dispute resolution (ODR) system. It is technology-driven and customer-friendly system for resolving customer disputes and grievances related to digital payments using "zero or minimal manual intervention".

In a bid push a digital payment services in India, the Reserve Bank of India on Thursday introduced online dispute resolution (ODR) system. It is technology-driven and customer-friendly system for resolving customer disputes and grievances related to digital payments using "zero or minimal manual intervention".

The central bank advised the authourised Payment System Operators (PSOs) – banks and non-banks – and their participants to place systems for ODR.

The central bank advised the authourised Payment System Operators (PSOs) – banks and non-banks – and their participants to place systems for ODR.

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"The authorised PSOs shall implement an ODR system for disputes and grievances related to failed transactions in their respective payment systems by January 1, 2021," the Reserve Bank of India stated.

"The PSOs shall provide access to such a system to its participating members i.e., Payment System Participants (PSPs)," the central bank said.

Any entity that is setting up a payment system in the country shall arrange the ODR system at the starting of the services, the regulator directed.

Structure of the ODR system:

1) Each PSO shall have an ODR system for resolving disputes and grievances arising out of failed transactions and provide the participating PSPs an access to the system

2) The PSO and its PSPs shall provide the customers an access for lodging the disputes and grievances relating to failed transactions, irrespective of such transactions being on-us or off-us in nature.

Lodging and tracking of disputes and grievances

1) Customers shall get one or more channels – web-based or paper-based complaint form, IVR, mobile application, call centre, SMS, through branches or offices – for lodging disputes and grievances.

2) "Such facility shall be provided by the PSO as well as by the PSP (the issuer institutions with whom the customer has a relationship) with a mechanism to link / access the ODR system put in place by the PSO," the bank said.

3) Additionally, in case of systems like Unified Payments Interface (UPI), third party app providers (TPAPs) shall also provide customers with a facility to lodge disputes and grievances through the same mobile app used for making payments, which shall be integrated with the ODR system.

4) The process of lodging the dispute or grievance shall be simple and involve only necessary minimum details. The ODR system should be made capable of automatically fetching full details based on the information provided by the customer. The aspect of data confidentiality shall specifically be taken care of while designing such parameters.

5) Once a customer has lodged the dispute or grievance, a unique reference number shall be allocated by the ODR system. Facility shall be provided to the customers for tracking the status of the dispute or grievance using this reference number.

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