Defined: Ombudsman Scheme for Virtual Transactions

Defined: Ombudsman Scheme for Virtual Transactions

This newsletter explains the ombudsman scheme for virtual transactions at the side of the entire related main points.


Ombudsman Scheme for Virtual Transactions, 2019 (“the Scheme”) was once established through the Reserve Financial institution of India (RBI). This scheme is a rapid and cost-free apex degree mechanism for the answer of the court cases of the shoppers who’ve undertaken the virtual transactions. It got here into impact from 31st January, 2019 and it extends to the entire of India. The Scheme applies to the industry in India of the Machine Members.


Virtual transaction as expounded underneath Clause 3 of the Scheme method “a price transaction in a continuing gadget effected with out the will for money a minimum of in probably the most two legs, if now not in each. This contains transactions made thru virtual/digital modes through which each the originator and the beneficiary use virtual/digital medium to ship or obtain cash.” In different phrases, it method a transaction of price in digital mode with out the will for money.


Who’s an Ombudsman?

Ombudsman for virtual transaction (“Ombudsman”) method an officer of RBI who’s appointed underneath Clause 4 of the Scheme. The definition of the similar is outlined in Clause 3(6) of the Scheme. He passes an award for the criticism made with appreciate to the Scheme.

Appointment of an Ombudsman

The RBI appoints a number of of its officials for the rank of Leader Basic Supervisor or the Basic Supervisor who’s referred to as Ombudsman for virtual transactions. He carries out the tasks that are given to them through or underneath the Scheme.

What’s his tenure?

The appointment of the Ombudsman is made for a length of now not exceeding 3 years at a time.

What number of Ombudsman are appointed and the place are they positioned?

Thus far, there are 21 Ombudsman were appointed with their places of work within the state capitals most commonly. Annexure I of the Scheme supplies the main points of the places of work comparable to cope with and make contact with main points.

Secretariat to the Ombudsman

Secretariat method an place of work constituted underneath Clause (1) of the Scheme. The Clause states that the RBI deputes a variety of officials or different personnel to the place of work of the Ombudsman as it is regarded as necessary to behave because the secretariat to the Ombudsman.

Jurisdiction, Energy and Tasks

The territorial limits of the Ombudsman are laid out in the RBI to which the authority of each and every Ombudsman shall prolong.


  • The target of the Scheme is to supply rapid and cost-free criticism redressal for deficiency in buyer products and services which might be presented within the virtual transactions which the non-bank entities regulated through RBI conducts.
  • The primary purpose of this Scheme is to cut back fraud and make certain that the shoppers are trusting the phrases of virtual bills.
  • The Scheme additionally witnesses in virtual transactions a quantum jump and in addition displays it through nullifying the threats which might be provide.


The Scheme applies to Machine Members outlined underneath Clause 3(11) of the Scheme. The Clause states that an individual with the exception of a financial institution who’s collaborating in a price gadget underneath Phase 2 of the Fee Agreement Techniques Act, 2007, now not together with Machine Supplier.


For complaint redressal, the complainant will have to first method the involved Machine Player. The complainant can method the Ombudsman when the Machine Player does now not reply inside of one month after receiving the criticism or he rejects the criticism or in case the complainant isn’t glad with the answer given through the Machine Player. In the entire aforementioned circumstances, the complainant can method the Ombudsman inside of whose jurisdiction the Machine Player’s department or place of work is positioned.

In case of a criticism that arises out of products and services with the centralized operations then it will be filed prior to the Ombudsman inside of whose jurisdiction the buyer’s billing or declared cope with is positioned.


Clause 8 of the Scheme states the grounds of the criticism. It states that someone can report a criticism charge unfastened to the Ombudsman who’ve the jurisdiction at the grounds of deficiency of carrier through the Machine Player. The next are probably the most grounds:

Pay as you go Fee Tools

  1. Pay as you go price tools– in case the Machine Player non-adhere to the RBI’s intructions about pay as you go price tools on any of the next:
  2. When there’s a failure in crediting the service provider’s account in cheap time;
  3. When there’s a failure in loading the price range in wallets/playing cards inside of an inexpensive time;
  4. There may be an unauthorized digital fund move;
  5. When there’s a failure in refund inside of an inexpensive time or refusal to refund in case of unsuccessful or rejected or returned or cancelled transactions;
  6. When Machine Player non-adhere to any of the directions of RBI;
  7. If there may be non-transfer or refusal to move in an inexpensive time or even supposing there’s a failure to move, the pay as you go price tools steadiness to the holder’s personal checking account or again to the supply on the time of pay as you go price tools closure, expiration of validity length, and so on.

Cell or Digital Fund Switch

  1. Cell or Digital fund move– in case the Machine Player non-adhere to the RBI’s directions about cell or digital fund move on any of the next:
  2. There’s a failure in effecting the net price or move of fund in cheap time;
  3. There may be unauthorized digital fund move;
  4.  When Machine Player non-adhere to any of the directions of RBI on cell or digital fund move;
  5. There may be failure to behave throughout the time frame upon stop-payment directions and underneath the notified instances to the shoppers throughout the discussed time frame;
  6. When there’s a failure in reversing the quantity debited from the buyer account throughout the prescribed time frame within the failed price transaction circumstances.
  7. When the price range which might be transferred wrongly to the beneficiary account as a result of lapse on the finish of Machine Player are non-reversal or didn’t opposite inside of an inexpensive time.


A criticism will also be filed with the Ombudsman through writing on a paper and sending it to the involved Ombudsman place of work both through submit or hand supply. The criticism can be filed through electronic mail to the Ombudsman.


The criticism will also be rejected through the Ombudsman at any degree in case it seems that to him that the criticism:

  • Isn’t made underneath the grounds of criticism specified underneath Clause 8 of the Scheme.
  • Towards the Machine Player was once made, was once now not coated underneath the Scheme.
  • Has now not addressed the involved Machine Player first for the redressal.
  • Is past the bounds of reimbursement.
  • In case the subject material of the criticism this is pending is already handled in another discussion board comparable to a court docket of legislation or client court docket.
  • The subject material is similar which have been already dealt through the Ombudsman in previous court cases.
  • Is frivolous and vexatious.
  • Covers the disputes which might be discussed underneath Phase 24 of the Fee and Agreement Techniques Act, 2007.
  • The disputes are associated with the transactions between shoppers.
  • Isn’t persuaded diligently through the complainant.
  • The Ombudsman is of the opinion that there’s no loss or hurt or inconvenience led to to the complainant.


In case the complainant is unhappy with the award, the Scheme supply an appellate mechanism for each complainant and Machine Player. Any complainant aggrieved with the award handed through an Ombudsman can method the Appellate authority.


An attraction will also be filed towards the award or the verdict of the Ombudsman rejecting the criticism inside of a length of 30 days from the date of receipt of conversation of award or the rejection of the criticism.

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