1 min read.Updated: 04 Oct 2019, 02:00 PM ISTNeil Borate
The RBI has mandated the creation of an internal ombudsman by non-bank issuers of prepaid payments wallets
Only issuers with more than 1 crore prepaid payments instruments outstanding will be covered by this directive
Faced issues will transferring money to your digital wallet? Have a dispute with a transaction through your online wallet? Soon, resolution will be faster and smoother. In its ‘Statement on Developmental and Regulatory Policies’ on the sidelines of the monetary policy that was announced today, the RBI has mandated the creation of an internal ombudsman by non-bank issuers of prepaid payments wallets.
Only issuers with more than 10 million (1 crore) prepaid payments instruments outstanding will be covered by this directive. Thus major digital wallet providers such Amazon Pay, Mobikwik or PhonePe are likely to fall under this ambit. However some major issuers such as Paytm which has a payments bank license will be covered by the banking ombudsman instead. The RBI’s objective is create swift and cost-effective mechanism for grievance redressal and create an additional tier for resolving complaints. The Central Bank is set to issue detailed instructions in this regard on 15th October 2019.
The latest step builds upon the Ombudsman Scheme for digital transactions which was set up in January 2019. The Ombudsman scheme lists out a series of issue that may arise for customers of prepaid payment instruments. They include failure in crediting merchant's account within reasonable time, failure to load funds within reasonable time in wallets /cards, unauthorized electronic fund transfer, among others. However customers can approach this body only after first taking their complaint to the provider in question. The new internal ombudsman proposed by the RBI is likely to help providers and customers resolve complaints internal.
“RBI’s instructions to large non-bank PPI issuers is expected to improve the level of customer service as well as bring in a more effective, responsive and institutionalized customer redressal system for customers of large wallet companies," said Gaurav Gupta, Co-founder and CEO, Myloancare.