DIGITAL PAYMENT REGULATORY BODIES

Question 1

What are DMRBs and what is their role in India?

Answer 1

DMRBs (Digital Payment Regulatory Bodies) are responsible for overseeing and regulating digital payments within India. The Reserve Bank of India (RBI) is a key player in this process.

Question 2

Who are Digital Transactions Ombudsmen (DTOs) and what do they do?

Answer 2

DTOs are senior RBI officials appointed across India to address customer grievances related to digital transactions. They handle complaints up to ₹20 lakh involving issues with prepaid payment instruments, mobile wallets, apps, NEFT/RTGS, and other digital payment methods.

Question 3

What powers do DTOs hold in resolving digital payment complaints?

Answer 3

DTOs can order companies or banks to rectify issues related to digital transactions. They can also direct them to compensate customers (up to ₹1 lakh) for inconvenience or distress caused.

Question 4

What happens if a digital payment dispute exceeds ₹20 lakh?

Answer 4

If the value of a dispute is above the DTO’s jurisdiction (₹20 lakh), the individual will need to approach the courts for resolution.

Question 5

What prompted the creation of the BPSS?

Answer 5

The Narsimham Committee II on Banking Reforms (1998) recommended establishing a regulatory framework for electronic banking, card payments, and related financial technologies.

Question 6

Outline the key events in the establishment of the BPSS.

Answer 6

2007: The Payment and Settlement Systems Act was enacted.
RBI: The Reserve Bank of India subsequently formed the BPSS to oversee the regulatory process.

Question 7

Which entities are required to register with the RBI’s BPSS?

Answer 7

All payment system providers in India must register with the BPSS. This includes:
Banks
Non-banking financial institutions
Mobile wallet companies
Prepaid payment instrument (PPI) issuers