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RBI asks fintech firms to share complaint data

MUMBAI: The Reserve Bank of India (RBI) has asked fintechs and payment providers to voluntarily disclose data on complaints received and time taken to resolve complaints. The regulator asked the payments industry to provide responses to the discussion paper on charges after segmenting the market based on peer-to-peer, merchant, transaction value, merchant size and speed.
Speaking Global FinTech Fest In Mumbai, RBI chief general manager P Vasudevan said that often companies ask complainants to give details personally when they complain on social media, but there is no indication whether it is resolved or not. He said the first avenue for grievance redressal should always be the provider, not the RBI.
On payment charges, Vasudevan said that thinking about what can be charged for each transaction globally is now changing. Policymakers are looking at whether the base case can be leveraged and whether add-on services can be leveraged. “We need to divide it further. . Peer to peer, peer to merchant, large value vs. small, large merchant vs. small merchant, instant transfer vs. delayed. All these factors need to be looked at while deciding the charge,” Vasudevan said.
PhonePe founder and CEO Sameer Nigam said that while payments are a public good, they cannot be a free-for-all and someone has to foot the bill. He said the previous Western model where merchant fees ranged from 3% to 5% was skewed. “I also don’t think we can go below cost recovery, and that’s where we are now. While making money through alternative means, while this may have been true for banks and the National Payments Corporation of India, it was not true for fintech,” he said.
The Corporation disagrees with the premise that payment providers can generate revenue using customer data.

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