Executive Summary:
The Reserve Bank of India (RBI) mandates the implementation of an Online Dispute Resolution (ODR) system for digital payment disputes. This system aims to be technology-driven, rule-based, and customer-friendly with minimal manual intervention. Authorised Payment System Operators (PSOs) must implement ODR for failed transactions by January 1, 2021, with plans to expand the scope later.
Key Points / Main Content:
* **ODR System Overview:**
* ODR system should be transparent, rule-based, system-driven, user-friendly, and unbiased.
* It should resolve customer disputes and grievances with minimal manual intervention.
* **Implementation:**
* Authorised PSOs must implement ODR for failed transactions by January 1, 2021.
* PSOs shall provide access to the ODR system to Payment System Participants (PSPs).
* Any new payment system or participant must have ODR available at commencement.
* **Scope of ODR:**
* Initially, ODR will cover disputes and grievances related to failed transactions, including all transaction types mentioned in RBI circular DPSS.CO.PD No.629/02.01.014/2019-20 dated September 20, 2019.
* The scope may later be extended to other types of disputes.
* TAT and customer compensation rules mentioned in the above circular must be followed.
* **Lodging and Tracking:**
* Customers must have multiple channels (web, paper, IVR, mobile app, call center, SMS, branches) to lodge disputes.
* Third-party app providers (TPAPs) in UPI must integrate dispute lodging into their apps.
* The dispute lodging process should be simple, requiring minimal details.
* A unique reference number must be provided for tracking dispute status.
* **Grievance Redressal:**
* If a grievance remains unresolved for one month, the customer may approach the Reserve Bank Integrated Ombudsman Scheme, 2021.
Impact Analysis:
* **Authorised Payment System Operators (PSOs):**
* *Impact:* Required to establish and maintain an ODR system for resolving disputes related to failed transactions.
* *Action Required:* Implement an ODR system by January 1, 2021, ensuring it meets the minimum requirements outlined in the annex.
* **Payment System Participants (PSPs) Banks and Non-Banks:**
* *Impact:* Need to integrate with the ODR system provided by the PSOs and provide customers access to lodge disputes.
* *Action Required:* Integrate with PSO's ODR system and provide customers with channels to lodge disputes related to failed transactions.
* **Customers:**
* *Impact:* Benefit from a streamlined, transparent, and efficient process for resolving disputes related to failed digital payment transactions.
* *Action Required:* Utilize the provided channels to lodge disputes and track their resolution status using the unique reference number.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the banking sector.
Online Dispute Resolution: A system for resolving customer disputes and grievances pertaining to digital payments.
Payment System Operators: Entities authorized to operate payment systems.
Payment System Participants: Members participating in a payment system.
Payment System Vision2021: A document by Reserve Bank of India highlighting the need for technology driven, rulebased, customerfriendly and transparent dispute redressal systems.
Payment and Settlement Systems Act, 2007: An act of the Indian Parliament that provides for the regulation and supervision of payment systems in India.
Reserve Bank Integrated Ombudsman Scheme, 2021: A scheme that provides a single point of reference for customer grievance redressal in the banking sector.
Mumbai, Maharashtra: Location of the Central Office of the Department of Payment and Settlement Systems.
भारतीय �रज़वर् बक�
RESERVE BANK OF INDIA
www.rbi.org.in
RBI/2020-21/21
DPSS.CO.PD No.116/02.12.004/2020-21 August 6, 2020
The Chairman / Managing Director / Chief Executive Officer
Authorised Payment System Operators and Participants (Banks and Non-banks)
Madam / Dear Sir,
Online Dispute Resolution (ODR) System for Digital Payments
Please refer to the Statement on Developmental and Regulatory Policies dated August 6, 2020
wherein the Reserve Bank of India (RBI) had announced introduction of Online Dispute
Resolution (ODR) system for resolving customer disputes and grievances pertaining to digital
payments, using a system-driven and rule-based mechanism with zero or minimal manual
intervention.
2. The Payment System Vision-2021 of Reserve Bank highlights the need for technology-
driven, rule-based, customer-friendly and transparent dispute redressal systems. As a step in this
direction, authorised Payment System Operators (PSOs) – banks and non-banks – and their
participants are hereby advised to put in place system/s for ODR for resolving disputes and
grievances of customers.
3. To begin with, authorised PSOs shall be required to implement an ODR system for
disputes and grievances related to failed transactions in their respective payment systems by
January 1, 2021. The PSOs shall provide access to such a system to its participating members
i.e., Payment System Participants (PSPs). Any entity setting up a payment system in India
thereafter or participating therein, shall make available the ODR system at the commencement of
its operations. The minimum requirements of the ODR system are specified in Annex.
भुगतान और िनपटान �णाली िवभाग, क��ीय कायार्लय, 14वीमंिजल, क��ीयकायार्लयभवन,शहीदभगत�संहमाग,र् फोटर्, मम्ुबई - 400001
फोनTel: (91-22) 2264 4995; फैक्स Fax: (91-22) 22691557; ई-मेलe-mail : cgmdpssco@rbi.org.in
Department of Payment and Settlement Systems, Central Office, 14th Floor, Central Office Building, Shahid Bhagat Singh Road, Fort, Mumbai -
400001
�हदं ी आसान ह,ै इसका �योग बढ़ाइए4. Based on experience gained, ODR arrangement would later be extended to cover
disputes and grievances other than those related to failed transactions. Please note that if the
grievance remains unresolved up to one month, the customer may approach the Reserve Bank -
Integrated Ombudsman Scheme, 2021 (as amended from time to time).
5. This directive is issued under Section 10 (2) read with Section 18 of Payment and
Settlement Systems Act, 2007 (Act 51 of 2007).
Yours faithfully,
(P. Vasudevan)
Chief General Manager
Encl. : As aboveAnnex
DPSS.CO.PD No. 116 / 02.12.004 / 2020-21 dated August 6, 2020
Minimum Requirements of the ODR System
1. Applicability
1.1. These requirements apply to all authorised Payment Systems Operators (PSOs) – banks
and non-banks – and their participating members [Payment System Participants (PSPs)].
2. Concept of the ODR system
2.1. The ODR system should be a transparent, rule-based, system-driven, user-friendly and
unbiased mechanism for resolving customer disputes and grievances, with zero or
minimal manual intervention.
3. Structure of the ODR system
3.1. Each PSO shall make available an ODR system for resolving disputes and grievances
arising out of failed transactions and provide the participating PSPs an access to the
system.
3.2. The PSO and its PSPs shall provide the customers an access for lodging the disputes
and grievances relating to failed transactions, irrespective of such transactions being on-
us or off-us in nature.
4. Types of transactions covered under the scope of the ODR system
4.1. To begin with, disputes and grievances relating to failed transactions shall be covered
under the ODR system. The scope, thus, includes all transaction types mentioned in the
RBI circular DPSS.CO.PD No.629/02.01.014/2019-20 dated September 20, 2019 on
“Harmonisation of Turn Around Time (TAT) and customer compensation for failed
transactions using authorised Payment Systems”.
4.2. All provisions, including those relating to TAT and compensation to customers mentioned
in the above circular need to be adhered to while resolving disputes and grievances using
the ODR system.
5. Lodging and tracking of disputes and grievances
5.1. Customers shall be provided with one or more channels – web-based or paper-based
complaint form, IVR, mobile application, call centre, SMS, through branches or offices,
etc. – for lodging disputes and grievances. As mentioned above, such facility shall beprovided by the PSO as well as by the PSP (the issuer institutions with whom the
customer has a relationship) with a mechanism to link / access the ODR system put in
place by the PSO. The industry may progressively increase the variety of these channels.
5.2. In addition to the above channels, in case of mobile phone-based systems like Unified
Payments Interface (UPI), third party app providers (TPAPs) shall also provide customers
with a facility to lodge disputes and grievances through the same mobile app used for
making payments, which shall be integrated with the ODR system.
5.3. The process of lodging the dispute or grievance shall be simple and involve only
necessary minimum details. The ODR system should be made capable of automatically
fetching full details based on the information provided by the customer. The aspect of
data confidentiality shall specifically be taken care of while designing such parameters.
5.4. Once a customer has lodged the dispute or grievance, a unique reference number shall
be allocated by the ODR system. Facility shall be provided to the customers for tracking
the status of the dispute or grievance using this reference number.
---------------------------