As rightly said by Dave Chapelle “Modern Problems requires modern solutions”. The only good outcome of the COVID-19 pandemic was that the digital economy saw a global revolution. Preventive measures such as lockdowns, social distancing, etc., which limited the scope of human interactions (all of which were a result of the pandemic), led to most forms of trade and communication being shifted online thereby increasing an individual’s dependence on such digital transactions. Each transaction involves a cost which is fulfilled in the form of digital payment. While this can be treated as a great leap forward, such a change is not devoid of certain inevitable issues.
Keeping in mind the growing issues with various digital payments, the Reserve Bank of India (RBI), introduced the Online Dispute Resolution (ODR) system for digital payment in its Statement on Developmental and Regulatory Policies through its notification dated August 06, 2020. The said system is applicable for authorized Payment System Operators and their Participating members.