By The Buyt Desk
Whether we like it or not, the post-CoVID19 era has pushed us all towards digital transactions. There has been a significant rise in digital transactions. The nationwide lockdown nudged even those who were earlier hesitant to use online mode of transactions. According to a KPMG poll survey on the impact of COVID 19 on digital payments, most 81% respondent said they chose digital payment over cash payment. If you would switch back to cash mode post-COVID, 65 % said unlikely as they find a digital payment to be more secure and safe.
The increased digital transaction also raised the number of complaints
But with rising online transaction, there has been a spike in the number of consumer grievances too. To resolve customer dispute, the Reserve Bank of India in Statement on Developmental and Regulatory Policies dated August 6, 2020 announced the Online Dispute Resolution (ODR) system for resolving customer disputes. The central bank has mandated banks and non-banks who are Payment System operators (PSOs) to bring forth a redressal framework to resolve consumer issues. The PSOs have to ensure that the customers can lodge an online complaint about failed transactions.
Online Dispute Resolution (ODR) to be implemented in phases
The PSOs have to roll out technology-driven redressal mechanisms that are rule-based, transparent and involve minimum (or no) manual intervention. The purpose of the ODR will be to deal with consumer disputes in a timely and effective manner. The authorized PSOs have to first implement the ODR systems for the failed transaction and then extend to other types of disputes and grievances.
Complaint Process through ODR
The ODR system will provide consumers with one or more ways to lodge their complaints – a web-based complaint form, IVR, a mobile app, SMS or a call center. The entire process should be comfortable with simple steps without causing any inconvenience to the customer. The ODR system should be able to collate the information automatically. Data confidentiality should be the topmost priority while designing the complaint system. Every consumer must be provided with a reference number by the ODR system so that he/she can track their complaint using this reference number. If the grievance remains unresolved up to one month, the customer may approach the respective ombudsman.
The idea behind the ODR system
The idea of ODR came from an RBI appointed committee. This committee was formed in 2019 headed by the non-executive chairman of Infosys, Nandan Nilekani. The committee gave lots of suggestion to make digital payments more accessible and easy to use. Nilekani Committee suggested elimination of many charges and making facility like RTGS round the clock. RBI has adhered to many of their recommendations, and now we do have a 24x7x365 RTGS system. It was this committee which suggested an online dispute resolution systems to handle complaints.
Any new company who sets up a payment system in India will have to put an ODR system in place as a prerequisite.
