OM­BUDS­MAN FOR DIG­I­TAL TRANS­AC­TIONS

Financial Chronicle - - POLICY REVIEW - RITWIK MUKHER­JEE

The Re­serve Bank of In­dia on Wed­nes­day said that it will set up an om­buds­man for dig­i­tal trans­ac­tions. The move was prompted by the fact that with dig­i­tal trans­ac­tions gain­ing rapid pace over the past year, mul­ti­ple is­sues such as failed trans­ac­tions and wrong re­mit­tances have been crop­ping up.

Sig­nif­i­cantly, ac­cord­ing to the RBI’s an­nual re­port for FY17-18, there has been an in­crease in the num­ber of com­plaints re­lated to dig­i­tal pay­ments and pre­paid pay­ment in­stru­ments (PPIs) is­sued by the banks and non-banks. The griev­ances re­lat­ing to dig­i­tal mode of fi­nan­cial trans­ac­tions ac­counted for 19 per cent of the to­tal com­plaints dur­ing 2016-17. This went up to 28 per cent till the end of June 2018. Go­ing by the RBI re­port, a to­tal of 3.5 bil­lion trans­ac­tions took place with PPIs val­ued at Rs 1,416 bil­lion.

Be­sides, the share of elec­tronic trans­ac­tions in re­tail pay­ments have also in­creased to 92.6 per cent in 2017-18 as com­pared to 88.9 per cent in the pre­vi­ous year. There­fore, while pay­ment tech­nol­ogy has evolved from phys­i­cal to dig­i­tal trans­ac­tions, one thing re­mains com­mon with both the tech­nolo­gies: com­plaints. While dig­i­tal trans­ac­tions, par­tic­u­larly post de­mon­eti­sa­tion, have grown enor­mously, com­plaints re­gard­ing these have also grown equally sig­nif­i­cantly.

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