
The Digital Payment Resolution System
In the latest development, the Reserve Bank of India, vide circular dated 6th 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. |
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.
Related Guides
Popular Post

Starting a small business can be a transformative venture, offering the exciting opportunity...

Tax deduction at source, shortly and popularly known as TDS, was introduced by the Income Tax...

Goods & Services Tax Certificate is issued to people who are registered under GST...

GST registration applies to all individuals and entities supplying goods or services in India. GST...

Gift tax in India is applied when the value of the received gift exceeds ₹50,000 in the...

The Union Budget 2025 has brought significant changes to India’s personal income tax structure, raising the...

The Goods and Services Tax (GST) is an indirect tax system introduced in India in 2017. It functions...

A trademark search is simply checking if another person or organization does not already own the...

Section 194H of the Income Tax Act in India mandates the deduction of Tax at Source (TDS) on commission or brokerage...

Section 80G Deduction is a facility available in the Income Tax Act which allows taxpayers to...

The Income Tax Department (ITD) has not provided specific guidance on crypto taxes for Indian investors. However...

Internal audit applicability is a critical concept for companies in India, impacting various...

In the business world, two main types of companies exist: private company and public company...

Ministry of Finance vide a Notification No 05/2022- Central Tax (Rate) dated 13.7.2022 has issued...

The Central Board of Indirect Taxes and Customs (CBIC) has recently announced an extension...

Depreciation is a key concept in finance and accounting. It helps us manage how the value of...

Form 10IA of the Income Tax Department must be filed by taxpayers claiming income tax deduction...

The Goods and Services Tax (GST) system in India has been a significant reform in the country's...

India's Gross Domestic Product (GDP) benefits significantly from the substantial...

The Finance Act, 2023 introduced the MSME 45-day payment rule under Section 43B(h) of the Income Tax Act...

The Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024, was announced by Union Finance Minister...