The Digital Payment Resolution System

In the latest development, the Reserve Bank of India, vide circular dated 6^th August 2020, has announced Online Dispute Resolution System for Digital Payments. The system aims to resolve disputes and grievances relating to digital payment with nil or minimal manual intervention. The resolution system will be system-driven and will be using a rule-based mechanism. The current article explains the reason for the introduction of the resolution system, the list of transactions covered under the resolution system, channels available to lodge disputes/ grievances, and the working of the resolution system.

Reason for the introduction of the resolution system

As widely known, the Government is promoting more and more use of digital payment mode. Additionally, the occurrence of COVID-19 pandemic has tremendously increased the usage of digital payment. With the increase in the number of digital payments, there has been a corresponding increase in the number of disputes and grievances. The need to introduce the transparent dispute resolution system was also highlighted in the Payment System Vision 2021 of the Reserve Bank of India. Adhering the same, the online dispute resolution system is announced.

Coverage of transactions under resolution system

The online dispute resolution system will cover the following kinds of transactions-

Sr. No.	Particulars	Transactions covered
1	ATM and Micro-ATM	Account debited but cash not dispensed.
2	Card to card transfer	Card account debited but receiver card account not credited.
3	Point of sale (card present)	Account debited but approval not received at a merchant location.
4	Card not present (e-commerce)	Account debited but approval not received at merchant system.
5	Immediate Payment System (i.e. IMPS)	Account debited but receiver account not credited.
6	Unified Payment System (i.e. UPI)	Account debited but receiver account not credited. Account debited but approval not received at a merchant location.
7	Aadhaar Enabled Payment System	Account debited but receiver account not credited. Account debited but approval not received at a merchant location.
8	Aadhaar Payment Bridge System	Delay in crediting receiver’s account.
9	National Automated Clearing House	Delay in crediting receiver’s account. Account debited despite the revocation of a debit mandate.
10	Prepaid Payment Instruments (card/ wallet)	Receiver’s prepaid payment instruments not credited. Instrument debited but approval not received at a merchant location.

The Reserve Bank of India has initially introduced the dispute resolution system only for the failed transactions. However, the circular, dated 6^th August 2020, clearly states that the once the dispute resolution system is successfully implemented the same will be extended to cover dispute and grievances other than those related to failed transactions.

Channels to lodge the disputes and grievances

Both web-based and paper-based complaint forms will be available for lodging the disputes and grievances. Further, channels like Interactive Voice Response, SMS, call center, mobile applications, etc. will also be made available.

Working of dispute resolution system

The working of the dispute resolution system for resolving the disputes and grievances arising out of the failed transactions is explained hereunder-

Each Payment System Operators will make available an online dispute resolution system.
Access to the online dispute resolution system is to be given to the participating Payment System Participants.
Both the Payment System Operators and their Payment System Participants will provide the customers with an access to lodge the dispute and grievances.

Other Important Points

The dispute and grievances can easily be lodged by providing only the necessary minimum details.
After lodging the dispute and grievance, the customer will be allotted a unique reference number. Such a unique reference number will enable the customer to track the status of the dispute/ grievance.
In case the dispute/ grievance remains unresolved, even after one month. Then, the customer may contact the respective regulator.

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