New RBI Rules for lost money from m-wallets

New RBI Rules for lost money from m-wallets
Highlights

The Reserve Bank of India RBI has set new guidelines if unauthorised or fraudulent transactions take place on mobile wallets like Paytm, PhonePe or other Prepaid Payment Instrument PPI issuers These new rules are aimed to protect consumers RBI has mandated that mobile wallet users will be given the same safety as provided to regular credit or debit card holders

The Reserve Bank of India (RBI) has set new guidelines if unauthorised or fraudulent transactions take place on mobile wallets like Paytm, PhonePe or other Prepaid Payment Instrument (PPI) issuers. These new rules are aimed to protect consumers. RBI has mandated that mobile wallet users will be given the same safety as provided to regular credit or debit card holders.

Here are the things you need to be aware of the new circular that RBI has issued in 2019.

  • RBI is making it mandatory that all transaction SMS that users receive should have a contact number and/or email ID to report unauthorized transactions.
  • Mobile wallet companies like Paytm, PhonePe, Amazon Pay and others will have to subscribe to alerts or SMS related to transactions to receive transaction-related information so that they report fraud immediately.
  • Mobile wallet companies will have to set up a 24/7 customer care helpline to report fraud or any loss or theft (or hack) of the mobile wallet account.
  • RBI has kept the level of security and liability similar to debit/credit cards.
  • If the victim suffers a loss due to fraud/negligence/deficiency on the mobile wallet provider then the entire amount has to be refunded if reported within 3 days.
  • If the fault is of the mobile wallet company and if the customer reports about an unauthorized transaction within 3 days then the entire amount has to be refunded by the company.
  • Even if the user doesn’t report a fraudulent transaction, the mobile wallet company has to initiate a refund.
  • If the fraud is reported within 4 to 7 days, the transaction value or Rs 10,000 whichever is lower must be refunded by the company.
  • If the fraud is reported after 7 days, the refund will be as per policy of the mobile wallet company as approved by the RBI.
  • All refund cases must be solved by the company within 10 days of reporting of fraud.
  • All complaints or disputes need to be resolved within 90 days irrespective of who is at fault.
  • If the complaint is not solved within 90 days then the company is liable to refund the fraudulent amount to the user.
  • Also, without KYC verification of users, mobile wallets cannot run after February 2019.
  • Experts estimate that more than 95% of the mobile wallets in the country could stop being operational by March due to this
Show Full Article
Download The Hans India Android App or iOS App for the Latest update on your phone.
More Stories


Top