The Reserve Bank of India vide its notification dated 6th August 2020 has announced introduction of Online Dispute Resolution (ODR) system for resolving customer disputes and grievances pertaining to digital payments, using a system-driven and rule-based mechanism with zero or minimal manual.
ODR is a new way of technology mediated dispute resolution. Moreover, the way ahead lies in the transformation of the ODR ecosystem to adapt to the changing demands of justice delivery using technology. So,in a major development for digital payment services, the payment system operators (PSOs) will have to implement Online Dispute Resolution (ODR) in their respective payment systems by January 1, 2021 in a phased manner :
These requirements apply to all authorised Payment Systems Operators (PSOs) – banks and non-banks –and their participating members [Payment System Participants (PSPs).
Concept of the ODR system
The ODR system should be a transparent, rule-based, system-driven, user-friendly and unbiased mechanism for resolving customer disputes and grievances, with zero or minimal manual intervention.
Structure of the ODR system
Each PSO shall make available an ODR system for resolving disputes and grievances arising out of failed transactions and provide the participating PSPs an access to the system.
In addition to the above channels, the process of lodging the dispute or grievance shall be simple and involve only necessary minimum details and in case of mobile phone-based systems like Unified Payments Interface (UPI), third party app providers (TPAPs) shall also provide customers with a facility to lodge disputes and grievances through the same mobile app used for making payments, which shall be integrated with the ODR system.