28% of consumer complaints received are about digital payments, says RBI

Almost 28% of the complaints filed by customers with the Reserve Bank of India are within the area of digital transactions and card payments. As per the RBI’s annual report on the Banking Ombudsman Scheme for 2017-18, 22% of the complaints pertained to banks not adhering to the ‘fair practice code’, whereas ATM and debit card-related problems created the second largest category at more than 15%.

Together with credit card-related complaints (at 7.7%) and online banking problems (at 5.2%), the overall share of complaints on digital channels nearly touched 30% of the entire complaints filed. Almost 8,500 complaints were filed on problems around internet and mobile banking. the quantity was over 24,000 for issues around debit cards and ATMs and 12,000 concerning issues around credit cards.

In comparison to 2017-18, ATM and debit card-related complaints were less in 2016-17 at regarding 12%, whereas issues regarding credit cards were at 6.4%. A comparative figure for internet and mobile banking-related complaints isn’t obtainable for 2016-17 because the category was added solely last fiscal.

RBI’s report on the Banking Ombudsman Scheme, 2017-18

Explaining the nature of complaints relating to ATMs and debit cards, the RBI said that over 60% of the problems concerning cash dispensing machines were raised around non-dispensation of cash in spite of the account being debited. With regard to credit cards, the majority of the complaints emanated from wrong billing and also the rest came from delayed reporting and other issues.

Keeping in mind the high share of complaints emanating within the area of digital payments, the RBI has declared the constitution of a separate ombudsman for Digital Payment method. About 28% of the complaints reported by the customers to the Reserve Bank of India (RBI) are concerning digital transactions and card payments, as per the information released by the central bank.

Consolidated data of the complaints reported in credit card-related category, online banking problems, and also the total share of complaints on digital channels nearly touched 30% of the entire complaints filed.

Written by Mrinalini Gaur