How to File a Complaint with Digital Payments Ombudsman against Payment Service Providers?

Right from the demonetization in India, we have seen a spike in the usage of digital wallets in India. The Indian Govt as well wants people to use digital payment platforms which will help in creating a cashless economy in our country. Recently, the government also introduced Tokenisation to secure card payments. Though technology helped us to do this, sometime, it may fail. You may lose your money, and payment service providers may also give no satisfactory response from their side in case of any inconvenience or loss of your hard-earned money. That’s why, in this article, we will talk about how to file a complaint with the Digital Payments Ombudsman against digital payment service providers.


Digital Payments Ombudsman

Reserve Bank Of India has recently launched the Ombudsman Scheme for Digital Transactions (OSDT) which will receive consumers’ complaints against payment providers. You can complain against prepaid payments instruments or any e-wallet companies such as Paytm, PhonePe, Google Pay, etc. in case of any issue or money loss on which the company did not give a satisfactory response to you.

The OSDT is available in 21 locations in 19 cities. But before consumers make any complaint to the OSDT, they should make sure that the issue is only with the payment services provider and not with the bank linked to their accounts. There’s a different ombudsman for banking grievances.

Which Complaints will be Accepted?

Once you make sure the problem is only with the payment provider, you can file a complaint against that company to the digital payments ombudsman. But before, making the complaint, you can see the list of accepted complaints below:

  • Electronic funds are transferred without the user’s authorisation.
  • Unable to transfer funds to your bank account from your digital wallet/ merchant’s wallet.
  • Fund loading failed and unable to load funds within a reasonable period.
  • Unable to transfer funds of payment.
  • Refunds failed after a failed transaction.
  • Inability to implement stop payment transactions.
  • Unified Payment Interface (UPI) related issues.
  • Bharat Bill Payment System-related complaints.
  • Bharat QR Code related difficulties and failures.
  • UPI QR Code related problems.
  • Non-adherence to any RBI’s instruction on digital payments.

The payment provider company should also resolve issues of users if it’s arising from transactions enabled on any third party websites or apps.

How to Complain to Digital Payments Ombudsman against Payment Service Providers?

Now you know that your complaint falls under any of these accepted categories, you are ready to file a complaint against the payment service provider. First of all, you need to let them know about the issue on their platform. If any satisfactory resolution is not given within 30 days from the day of submitting the complaint on their platform, you can file a complaint against them within the next year on Digital Payments Ombudsman within the jurisdiction where one of their offices is situated.

If the company doesn’t have any specific location or they operate centrally from a single place, then you need to see the billing address and submit your complaint to the ombudsman of the same location mentioned in the billing address given to you by the company.

RBI has introduced the online method of the ombudsman, and you can simply file your complaint by just dropping an email to the official email address of the relevant ombudsman. You can easily find the official email address of the ombudsman on RBI’s official notification here. You will also get the complaint form on this notification (See Page No: 22-27).

On the form and email, you need to include your details, required documents and the necessary remedial procedure to solve your problem and a declaration.

What will be the Compensation?

You can expect Rs 1 lakh as compensation for the loss of your valuable time, your expenses regarding this process and your mental misery. The maximum compensation amount is Rs 20 lakh which can be awarded by the digital payments ombudsman.

That was how you could file a complaint against the digital wallet or payment service provider companies with the digital payments ombudsman. Did it help you? Then please let us know in the comments section below and also share this article with your friends who may need this.

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