RBI Governor Shaktikanta Dashas criticized the lack of an effective customer complaints recourse mechanism among many payment system operators, underlining the need for the industry to treat every fraud and complaint as a cause for concern that requires detailed analysis of the root cause.
“Although there is widespread appreciation of the online dispute resolution (ODR) system devised by RBI, how many payment system operators (PSOs) have actually enabled it? Shouldn’t entities embrace such initiatives early and improve customer satisfaction? After all, OSP dealing with public money,” he said in a speech to the PSO conference in Kochi on Saturday.
Das warned that public confidence in digital payments would be eroded without efficient dispute resolution. “The availability and affordability of a rapid grievance recourse mechanism is of utmost importance to ensure public trust in digital payments,” she added.
While the traditional bank branch model offers a physical place for customers to make complaints, Das said the same may not be true for digital payments where users sometimes struggle to ascertain the appropriate forum to resolve such issues.
He suggested that OSPs could leverage the technology and adopt rules-based complaint resolution with zero to minimal manual intervention.
Das praised PSOs for stepping up during the pandemic, when the resilience of payment systems has been tested. However, he stressed the need for continuous innovation and adaptation to changing circumstances.
Das said RBI has taken a number of steps to increase the security of payment transactions and the ecosystem. He cited the introduction of additional authentication factor for card-based e-commerce and online transactions, later extended to other payment methods and channels, as a success story in Indian payment systems.
“Although there is widespread appreciation of the online dispute resolution (ODR) system devised by RBI, how many payment system operators (PSOs) have actually enabled it? Shouldn’t entities embrace such initiatives early and improve customer satisfaction? After all, OSP dealing with public money,” he said in a speech to the PSO conference in Kochi on Saturday.
Das warned that public confidence in digital payments would be eroded without efficient dispute resolution. “The availability and affordability of a rapid grievance recourse mechanism is of utmost importance to ensure public trust in digital payments,” she added.
While the traditional bank branch model offers a physical place for customers to make complaints, Das said the same may not be true for digital payments where users sometimes struggle to ascertain the appropriate forum to resolve such issues.
He suggested that OSPs could leverage the technology and adopt rules-based complaint resolution with zero to minimal manual intervention.
Das praised PSOs for stepping up during the pandemic, when the resilience of payment systems has been tested. However, he stressed the need for continuous innovation and adaptation to changing circumstances.
Das said RBI has taken a number of steps to increase the security of payment transactions and the ecosystem. He cited the introduction of additional authentication factor for card-based e-commerce and online transactions, later extended to other payment methods and channels, as a success story in Indian payment systems.
