Economics • Banking & FinanceMedium
What is the primary purpose of the 'Ombudsman Scheme for Digital Transactions, 2019' launched by the Reserve Bank of India?
A. To provide a cost-free grievance redressal mechanism for customers against digital payment service providers regulated by the central bank✓ Correct Answer
B. To audit cybersecurity frameworks of scheduled commercial banks for preventing data breaches
C. To regulate the issuance of prepaid payment instruments and digital wallets by non-banking financial companies
D. To settle inter-bank electronic clearing and settlement disputes arising from RTGS and NEFT transactions
💡 Solution & Explanation
The Ombudsman Scheme for Digital Transactions was established to provide a cost-free, expedited grievance redressal mechanism for customers facing operational deficiencies in digital transactions handled by RBI-regulated entities. Distractors point toward cybersecurity audits, prepaid wallet licensing, or inter-bank RTGS clearing disputes which are managed under separate regulatory divisions. This scheme has since been subsumed under the comprehensive Reserve Bank-Integrated Ombudsman Scheme. Customers can approach the ombudsman if their complaints are not resolved by digital service providers within thirty days.
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