• India CSR Awards 2025
  • Guest Posts
Friday, June 13, 2025
  • Login
India CSR
  • Home
  • Corporate Social Responsibility
    • Art & Culture
    • CSR Leaders
    • Child Rights
    • Culture
    • Education
    • Gender Equality
    • Around the World
    • Skill Development
    • Safety
    • Covid-19
    • Safe Food For All
  • Sustainability
    • Sustainability Dialogues
    • Sustainability Knowledge Series
    • Plastics
    • Sustainable Development Goals
    • ESG
    • Circular Economy
    • BRSR
  • Corporate Governance
    • Diversity & Inclusion
  • Interviews
  • SDGs
    • No Poverty
    • Zero Hunger
    • Good Health & Well-Being
    • Quality Education
    • Gender Equality
    • Clean Water & Sanitation – SDG 6
    • Affordable & Clean Energy
    • Decent Work & Economic Growth
    • Industry, Innovation & Infrastructure
    • Reduced Inequalities
    • Sustainable Cities & Communities
    • Responsible Consumption & Production
    • Climate Action
    • Life Below Water
    • Life on Land
    • Peace, Justice & Strong Institutions
    • Partnerships for the Goals
  • Articles
  • Events
  • हिंदी
  • More
    • Business
    • Finance
    • Environment
    • Economy
    • Health
    • Around the World
    • Social Sector Leaders
    • Social Entrepreneurship
    • Trending News
      • Important Days
        • Festivals
      • Great People
      • Product Review
      • International
      • Sports
      • Entertainment
    • Case Studies
    • Philanthropy
    • Biography
    • Technology
    • Lifestyle
    • Sports
    • Gaming
    • Knowledge
    • Home Improvement
    • Words Power
    • Chief Ministers
No Result
View All Result
  • Home
  • Corporate Social Responsibility
    • Art & Culture
    • CSR Leaders
    • Child Rights
    • Culture
    • Education
    • Gender Equality
    • Around the World
    • Skill Development
    • Safety
    • Covid-19
    • Safe Food For All
  • Sustainability
    • Sustainability Dialogues
    • Sustainability Knowledge Series
    • Plastics
    • Sustainable Development Goals
    • ESG
    • Circular Economy
    • BRSR
  • Corporate Governance
    • Diversity & Inclusion
  • Interviews
  • SDGs
    • No Poverty
    • Zero Hunger
    • Good Health & Well-Being
    • Quality Education
    • Gender Equality
    • Clean Water & Sanitation – SDG 6
    • Affordable & Clean Energy
    • Decent Work & Economic Growth
    • Industry, Innovation & Infrastructure
    • Reduced Inequalities
    • Sustainable Cities & Communities
    • Responsible Consumption & Production
    • Climate Action
    • Life Below Water
    • Life on Land
    • Peace, Justice & Strong Institutions
    • Partnerships for the Goals
  • Articles
  • Events
  • हिंदी
  • More
    • Business
    • Finance
    • Environment
    • Economy
    • Health
    • Around the World
    • Social Sector Leaders
    • Social Entrepreneurship
    • Trending News
      • Important Days
        • Festivals
      • Great People
      • Product Review
      • International
      • Sports
      • Entertainment
    • Case Studies
    • Philanthropy
    • Biography
    • Technology
    • Lifestyle
    • Sports
    • Gaming
    • Knowledge
    • Home Improvement
    • Words Power
    • Chief Ministers
No Result
View All Result
India CSR
No Result
View All Result
Home Economy

Digital Economy: Root Cause Analysis of Failed Transactions and Frauds is Key

India processed 10.5 billion digital payment transactions worth Rs. 51 trillion in January 2023.

India CSR by India CSR
in Economy
Reading Time: 5 mins read
Digital Economy Digital Payments

Photo Credit: Google

Share Share Share Share
  • The digital payments industry in India and the role of payment system operators (PSOs) in ensuring its growth and success.
  • The RBI had directed PSOs to implement an ODR system for disputes and grievances related to failed transactions in their respective payment systems by January 1, 2021.

India’s digital payments industry has experienced tremendous growth in recent years, with over 10 billion retail digital payment transactions processed in January 2023 alone. However, Reserve Bank of India governor Shaktikanta Das has raised concerns over payment system operators (PSOs) who are unwilling to comply with regulatory instructions, leading to low customer satisfaction and potential risks to cyber security and data privacy.

In this article, we discuss the importance of PSOs embracing initiatives that deal with public money, upgrading their systems, focusing on good governance and risk management, and maintaining robust IT infrastructure to promote the ease and convenience of digital payments while mitigating potential risks.

RBI Governor Shaktikanta Das on Compliance with Regulatory Instructions by PSOs

The digital payments industry has grown rapidly in India over the past few years, but some payment system operators (PSOs) are unwilling to comply with regulatory instructions, according to Reserve Bank of India governor Shaktikanta Das. While the RBI has introduced an Online Dispute Resolution (ODR) system for failed transactions, Das noted that few PSOs have actually enabled it. This raises concerns about customer satisfaction and the need for PSOs to embrace initiatives that deal with public money.

Contours of Economic Recovery in Post - Covid World: RBI Governor Shaktikanta Das
RBI Governor Shaktikanta Das: India CSR

The Online Dispute Resolution (ODR)

Online Dispute Resolution (ODR) is a system provided by the Reserve Bank of India to help customers resolve disputes related to failed digital payment transactions. The ODR system enables customers to lodge complaints and resolve disputes related to digital payments through an online platform. It is an efficient and convenient way for customers to seek resolution of their grievances, without having to visit a physical branch or office. However, according to RBI governor Shaktikanta Das, few payment system operators (PSOs) have actually enabled the ODR system, raising concerns about customer satisfaction and the need for PSOs to embrace initiatives that deal with public money.

India CSR
ADVERTISEMENT

Payment System Operators (PSOs) in India’s Digital Economy

Payment System Operators (PSOs) are entities that provide digital payment services to customers. They act as intermediaries between the payer and the payee in a digital transaction, facilitating the transfer of funds from one account to another. PSOs include banks, non-banking financial companies (NBFCs), payment banks, and other authorized entities that are licensed by the Reserve Bank of India (RBI) to provide digital payment services. They play a critical role in the digital economy by ensuring the safe, secure, and efficient processing of digital payments.

India’s Digital Payments Industry: Size and Efficiency

The size and efficiency of India’s digital payments industry is significant, with 10.5 billion retail digital payment transactions worth Rs. 51 trillion processed in January 2023 alone. Since PSOs are heavily dependent on technology, they must constantly upgrade their systems to remain relevant and increase efficiency. Legacy systems must be updated to bring them in line with changing realities. However, some PSOs display unwillingness to comply with regulatory instructions, citing various reasons like the cost of carrying out system-level changes.

The Role of PSOs in Ensuring Resilient and Safe Digital Payments

Governor Das noted that PSOs have a big responsibility to ensure that digital payments are resilient and safe, as a single bad experience of the customer with digital payments may drive them away to other channels or modes of payments. The launch of UPI linkage with Singapore’s PayNow is a major step forward in the payments space, and in future, such linkages with other countries will make cross-border payments simple, affordable, and real-time. QR code-based merchant payments through UPI apps are already enabled in Bhutan, Singapore, and the UAE, which would help project India’s soft power at the global level.

Potential Risks and Mitigation Measures for PSOs in the Digital Payments Industry

However, the increase in digital payments also highlights potential risks pertaining to cyber security, data privacy, and operational resilience. PSOs must always be cognizant of the emerging threats and put in place suitable risk mitigation measures. A related area that requires focus is outsourcing arrangements of PSOs with their vendors. Service level agreements with vendors should meet minimum standards prescribed by the Reserve Bank, and PSOs’ right to conduct an audit of the service provider must always be ensured.

Leveraging Jan Dhan Accounts and Ensuring Good Governance by PSOs

Governor Das highlighted the importance of leveraging Jan Dhan accounts, of which over 48 crore have been opened. PSOs have an important role to play in creating awareness and countering misinformation to help people realize the ease that digital payments can bring to their lives. Going forward, PSOs should specifically focus on ensuring good governance and prudent risk management, maintaining robust IT infrastructure with cyber resilience, and putting in place a responsive grievance redress mechanism for long-term success.

Future Directions for PSOs in the Digital Payments Industry

Efforts may also be made for ensuring wider participation in the framework for offline payments. PSOs may also work on the formation of Self-Regulatory Organizations (SROs) for the greater good of all stakeholders. It is crucial for PSOs to conduct a detailed root cause analysis of every failed transaction, every fraud attempted or actually carried out, and every complaint that is not satisfactorily addressed, as this will help prevent future incidents.

In conclusion, the digital payments industry in India has grown significantly, but PSOs must comply with regulatory instructions, upgrade their systems, and focus on good governance, prudent risk management, and maintaining robust IT infrastructure. By doing so, they can help increase customer satisfaction and promote the ease and convenience of digital payments, while also mitigating potential risks pertaining to cyber security, data privacy, and operational resilience.

(India CSR Research)

Tags: BankingBanking NewsBanking System StablePayment System OperatorsRBIRBI Governor Shaktikanta DasRBI Latest NewsRBI NewsReserve Bank of IndiaResilientShaktikanta Das

India CSR offers strategic corporate outreach opportunities to amplify your brand’s CSR, Sustainability, and ESG success stories.

📩 Contact us at: biz@indiacsr.in

Let’s collaborate to amplify your brand’s impact in the CSR and ESG ecosystem.

ADVERTISEMENT
India CSR

India CSR

India CSR is the largest media on CSR and sustainability offering diverse content across multisectoral issues on business responsibility. It covers Sustainable Development, Corporate Social Responsibility (CSR), Sustainability, and related issues in India. Founded in 2009, the organisation aspires to become a globally admired media that offers valuable information to its readers through responsible reporting.

Related Posts

India: A Partner in Progress and Prosperity
Economy

U.S. FDI in India Falls 60% Over Five Years

2 weeks ago
0
India: A Partner in Progress and Prosperity
Economy

India: A Partner in Progress and Prosperity

3 weeks ago
0
India’s Growth Stays Strong as Inflation Hits 5-Year Low
Economy

India Stands Resilient: Growth Momentum Holds While Inflation Touches 5-Year Low

3 weeks ago
0
Chhattisgarh Tops India with Rs 16,390 Cr GST Revenue in 2024-25
Economy

Chhattisgarh Tops India with Rs 16,390 Cr GST Revenue in 2024-25

2 months ago
0
Jindal Steel & Power
Economy

EU Steel Curbs to Test India’s Metal Might

3 months ago
0
FDI Policy
Economy

India FDI Journey Hits $1 Trillion: A Landmark Achievement

6 months ago
0
Roundtable on ‘Transforming the livelihoods of Adivasis in Maharashtra’ on June 23 in Mumbai
Economy

BJP’s Vision for Maharashtra: A $1 Trillion Economy by 2028

7 months ago
0
Kiril Sokoloff
Economy

India Can Lead the Global South: Kiril Sokoloff’s Vision for the Next 100 Years

9 months ago
0
INDIA CSR LOGO (CopyRight@IndiaCSR)
Economy

The Indian Pharma Industry: Growth, Challenges, and Global Leadership – 2023-27

9 months ago
0
Load More
Next Post
Ethanol Blending Policy

Ethanol Blending Policy: Meeting the Tamil Nadu's Growing Petrol Requirement

ESG Performance and Revenue Growth: Correlation and Benefits for Brands

ESG Performance and Revenue Growth: Correlation and Benefits for Brands

India CSR Awards India CSR Awards India CSR Awards
ADVERTISEMENT

LATEST NEWS

Sunjay Kapur – Jindal’s Independent Director Passes Away at 53

India’s Rs 31 Lakh Crore Investment Fuels Net-Zero Transition

Courtyard by Marriott Aravali Goes Green with 368 KWp Solar Installation

आत्मनिर्भर रक्षा का नवयुग: प्रधानमंत्री मोदी के नेतृत्व में 11 वर्षों की गौरवशाली यात्रा – राधा मोहन सिंह

CSR: BGSW Unveils Accessible Resource Center to Empower Visually Impaired Students

Calderys Sets Sustainability Milestone at Odisha Greenfield Project

HZL HZL HZL
ADVERTISEMENT

TOP NEWS

CSR: Garnier and Swachh Bharat Mission-Urban Unite Against Plastic Pollution

“Bihar Leads the Rising East” Seminar Highlights State’s Developmental Leap

IREDA Share Price History: From IPO to 2025 – A Detailed Analysis

Calderys Sets Sustainability Milestone at Odisha Greenfield Project

Complete Guide to Using MetaTrader 5 on Your PC for Trading Success

CSR: Karur Vysya Bank Marks World Environment Day with Massive Green Initiative

Load More

Advertisement

Image Slider
content writing services Guest Post Top 5 Reasons to have Sponsored Posts at India CSR – India’s Largest CSR Media stem learning R2V2 Technologies Private Limited

Interviews

Himanshu Nivsarkar, Senior Executive Vice President and Head of CSR & ESG at Kotak Mahindra Bank
Interviews

Driving Sustainable Impact: An Interview with Himanshu Nivsarkar, Kotak Mahindra Bank

by India CSR
May 22, 2025
0

By Rusen Kumar NEW DELHI (India CSR): Himanshu Nivsarkar, Senior Executive Vice President and Head of CSR & ESG at Kotak...

Read moreDetails
Balamurugan Thevar, CSR Head at Shriram Finance

Empowering Women Drivers: An Interview with Balamurugan Thevar, CSR Head at Shriram Finance

May 20, 2025
0
N E Sridhar, the Chief Sustainability Officer at Titan Company Ltd.

Empowering Rural Craft Entrepreneurs: An Interview with N E Sridhar, Titan Company

May 15, 2025
0
Geetaj Channana, the Head of Corporate Strategy at Vivo India

Empowering Young Innovators Across India: An Interview with Geetaj Channana, the Head of Corporate Strategy at Vivo India

April 25, 2025
0
Load More
Facebook Twitter Youtube LinkedIn Instagram
India CSR Logo

India CSR is the largest tech-led platform for information on CSR and sustainability in India offering diverse content across multisectoral issues. It covers Sustainable Development, Corporate Social Responsibility (CSR), Sustainability, and related issues in India. Founded in 2009, the organisation aspires to become a globally admired media that offers valuable information to its readers through responsible reporting. To enjoy the premium services, we invite you to partner with us.

Follow us on social media:


Dear Valued Reader

India CSR is a free media platform that provides up-to-date information on CSR, Sustainability, ESG, and SDGs. They need reader support to continue delivering honest news. Donations of any amount are appreciated.

Help save India CSR.

Donate Now

donate at indiacsr

  • About India CSR
  • Team
  • India CSR Awards 2025
  • Partnership
  • Guest Posts
  • Services
  • Content Writing Services
  • Business Information
  • Contact
  • Privacy Policy
  • Terms of Use
  • Donate

Copyright © 2025 - India CSR | All Rights Reserved

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Corporate Social Responsibility
    • Art & Culture
    • CSR Leaders
    • Child Rights
    • Culture
    • Education
    • Gender Equality
    • Around the World
    • Skill Development
    • Safety
    • Covid-19
    • Safe Food For All
  • Sustainability
    • Sustainability Dialogues
    • Sustainability Knowledge Series
    • Plastics
    • Sustainable Development Goals
    • ESG
    • Circular Economy
    • BRSR
  • Corporate Governance
    • Diversity & Inclusion
  • Interviews
  • SDGs
    • No Poverty
    • Zero Hunger
    • Good Health & Well-Being
    • Quality Education
    • Gender Equality
    • Clean Water & Sanitation – SDG 6
    • Affordable & Clean Energy
    • Decent Work & Economic Growth
    • Industry, Innovation & Infrastructure
    • Reduced Inequalities
    • Sustainable Cities & Communities
    • Responsible Consumption & Production
    • Climate Action
    • Life Below Water
    • Life on Land
    • Peace, Justice & Strong Institutions
    • Partnerships for the Goals
  • Articles
  • Events
  • हिंदी
  • More
    • Business
    • Finance
    • Environment
    • Economy
    • Health
    • Around the World
    • Social Sector Leaders
    • Social Entrepreneurship
    • Trending News
      • Important Days
      • Great People
      • Product Review
      • International
      • Sports
      • Entertainment
    • Case Studies
    • Philanthropy
    • Biography
    • Technology
    • Lifestyle
    • Sports
    • Gaming
    • Knowledge
    • Home Improvement
    • Words Power
    • Chief Ministers

Copyright © 2025 - India CSR | All Rights Reserved

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.