The Ombudsman Scheme for Digital Transactions (OSDT) is introduced by RBI, with effect from January 31, 2019, under Section 18 of the Payment and Settlement Systems Act, 2007. The scheme provides a cost-free and expeditious complaint redressal mechanism relating to deficiency in customer services in digital transactions conducted through non-banking ‘System Participant’. The ‘system Participant’ means any person other than a bank participating in a payment system such as digital transactions undertaken by mobile wallets or tech enabled payment companies using UPI for settlements regulated by RBI. The complaints relating to such digital transactions conducted through banks will continue to be handled under the Banking Ombudsman Scheme. In the other words Ombudsman Scheme for Digital Transactions (OSDT) will not entertain complaints regarding digital transactions conducted through a bank which will be handled by under the Banking Ombudsman Scheme.
Nature of complaints admitted by the Ombudsman:
The Ombudsman for Digital Transactions is appointed by the Reserve Bank of India who is a senior official of the RBI. The office of the OSDT will have the same territorial jurisdiction of existing 21 offices of the Banking Ombudsman. Any aggrieved person may file a complaint, free of cost, with the Ombudsman for Digital Transactions on grounds alleging deficiency in Prepaid Payment Instruments, and Mobile / Electronic Fund Transfers. The complaint may also be on non-adherence to instructions of Reserve Bank / respective System Provider to System Participants, on payment transactions through Unified Payments Interface (UPI) / Bharat Bill Payment System (BBPS) / Bharat QR Code / UPI QR Code etc. It may also be on the ground of Non-reversal / failure to reverse within reasonable time, funds wrongly transferred to the beneficiary account due to lapse at the end of System Participant. Any other matter relating to the violation of the directives including on fees / charges, if any, issued by the Reserve Bank in relation to digital transactions may be the cause of complaint to OSDT.
Quantum of compensation:
The Ombudsman for Digital Transactions has the power to award compensation to the extent of the actual loss suffered or 20 lakh rupees whichever is lower. He may also award Rs 1 lakh to the complainant for loss of his time, expenses incurred, harassment and mental agony suffered by him. It is up to the complainant to accept the Award in full and final settlement or reject it. Any Party to the complaint aggrieved by an award of Ombudsman may appeal before Appellate Authority within 30 days of the date of receipt of communication of Award. The ‘Appellate Authority’ means the Deputy Governor in charge of the Department of the Reserve Bank implementing the Scheme.
Admission of the complaint by the Ombudsman:
The complainant must first approach the concerned System Participant. If the System Participant does not reply within a period of one month after receipt of the complaint, or rejects the complaint, or if the complainant is not satisfied with the reply given, the complainant can file the complaint with the Ombudsman for Digital Transactions with in whose jurisdiction the branch or office of the System Participant complained against, is located. For complaints arising out of services with centralized operations, the same shall be filed before the Ombudsman for Digital Transactions within whose territorial jurisdiction the billing / declared address of the customer is located.
Non-admission of the complaint by the Ombudsman:
The complaints regarding deficiency of customer service will not be accepted/ considered by Ombudsman in the following cases:
When the complaint is not made to Ombudsman within one year from the date of receipt of reply from the System Participant or in case the reply is not received from the system participant and the complaint to the Ombudsman is made after the lapse of more than one year and one month from the date of complaint to the System Participant. However, in exceptional circumstances the Ombudsman may accept a complaint made after the period mentioned above may be accepted subject to the complaint is made before the expiry of the period of limitation prescribed under the Indian Limitation Act, 1963 for such claims.
Moreover, Ombudsman will not accept a complaint, in case the subject matter of the complaint is pending for disposal / has already been dealt with at any other forum like court of law, consumer court etc. or if the complaint is for the same subject matter that was settled through the office of the Ombudsman in any previous proceedings or if the complaint is frivolous or vexatious or the complaint falls under the disputes covered under Section 24 of the Payment and Settlement Systems Act, 2007 or the complaint relates to dispute arising from a transaction between customers.
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