RBI directs the likes of Paytm and PhonePe to have an internal ombudsman
Posted On : Monday, October 14, 2019, 12:05 PM
The Reserve Bank of India (RBI) has directed large pre-paid instrument (PPI) issuers to set up an internal ombudsman mechanism to address customers' grievances. The banking regulator issued this diktat while announcing the monetary policy on October 4. A pre-payment issuer is typically a mobile wallet. Some of the popular and large PPI issuers are Paytm, Mobikwik, Zeta India, PayU, PhonePe and Amazon Pay. These large PPI issuers have been witnessing an enormous growth in their customer base and transaction scale, given the impetus around the digital agenda of the Government. The increased scale has led to a steady increase in customer complaints – a proportion of which is also related to fraud and misconduct. The internal ombudsman mechanism is imperative to ensure customer grievances are resolved in the most effective manner and within a defined timeframe.