Need consumer redressal system in online bank payments: Raghuram Rajan

HYDERABAD: RBI Governor Raghuram Rajan has flagged his concern over the rising complaints over online bank transactions and called for an effective consumer redressal system in place for evolution of payment systems.

"An increasing source of customer complaints comes from online transactions done by banks where transactions get dropped in the middle and reconciling the fact that the money has gone out of your account but has not reached the online platform that you wanted to pay takes a long long long time," Rajan said, adding, "we need an effective process of consumer redressal that allows speedy and fair resolution of customer complaints."

He was speaking on the sidelines of the Institute for Development and Research in Banking Technology's ( IDRBT) banking technology excellence awards.

Rajan also asked the operators to absorb the residual risks and costs involved in such transactions as long as the customer adheres to a reasonable level of care and it is possible to ensure that these risks are limited substantially.

In a bid to bring in more people under the umbrella of electronic transactions, Rajan suggested incentivising merchants by way of tax credits who show higher increase in electronic transactions. He also suggested taking out a lottery every month for individuals who transact online by giving a number and awarding the winner.