RBI installs ombudsman for digital payments

Reserve Bank of India (RBI) has launched an ombudsman scheme for digital payments, a little less than three months after the RBI proposed such a plan.

The ombudsman scheme will address for free complaints regarding digital payment services offered by mobile wallets, prepaid cards and other non-banking channels.

Under the scheme, the ombudsman can award up to Rs 20 lakh over and above the disputed amount. Further, it can award Rs 1 lakh for mental agony and harassment to the complainant.

Recently, the RBI also brought out a policy paper in order to encourage new payment system operators.

The banking regulator RBI has been proactive in streamlining and regulating online financial services.

In late 2017, the RBI issued directions to govern the workings of non-banking financial companies (NBFCs) engaged in peer-to-peer (P2P) lending.

Accordingly, it stated that no non-banking institution other than a company can undertake P2P lending without obtaining a certificate of registration. Besides, every company seeking registration should have a net-owned fund of not less than Rs 2 crore, or as specified by the RBI.