RBI: Ombudsman for digital transactions from January 2019
Mumbai: In view of the surge in digital transactions, RBI Monetary Policy Committee (MPC) has decided on the implementation of an ombudsman for digital transactions. New systems will be notified by the end of January 2019.
Ombudsman for digital transactions
The decision was taken at the end of 3-day long MPC meeting at the Reserve Bank of India (RBI) headquarters in Mumbai.
Who is an Ombudsman? Ombudsman refers to an official appointed to investigate individuals' complaints against a company or organization, especially a public authority.
Surge in Digital TransactionsThe Reserve Bank of India (RBI) in its annual report said that all payment and settlement systems - NEFT, IMPS, UPI, NACH, card payments, Electronic Clearing Systems as well as Forex and market clearing systems – have seen a 44.6 percent increase in volume in 2017-18 and an 11.9 percent increase in the value of funds transferred. Read more:RBI kept the repo rate unchanged at 6.5% The RBI also said the share of paper-based clearing instruments reduced from 11.1 percent in 2016-17 to 7.4 percent in 2017-18, showing a strong trend in favour of digital payments. As per the RBI data, credit and debit card transactions on Point of Sale (PoS) devices doubled between FY16 and FY17. The total number of card transactions in the country stood at 5.4 billion in FY17, up from 2.7 billion transactions in FY16. Banks covered under the Banking Ombudsman Scheme, 2006: All Scheduled Commercial Banks, Regional Rural Banks and Scheduled Primary Co-operative Banks are covered under the Scheme.