To bring in more clarity as to what happens when unauthorised or fraudulent transactions take place on mobile wallets like Paytm, PhonePe or other Prepaid Payment Instrument (PPI) issuers, the Reserve Bank of India (RBI) has set new guidelines. The new rules are aimed to protect consumers in case of any fraudulent or unauthorised transaction happening from such platforms. RBI has mandated that mobile wallet users will be provided the same safety as given to regular credit or debit card holders. Here is everything you need to know about the new circular that RBI has issued in 2019.
All mobile wallet players will have provide contact information to report fraud cases in transaction alert SMS
RBI is making it mandatory that all transaction SMS that users receive should have a contact number and/or email ID to report unauthorised transactions.
All mobile wallet users will have to subscribe to alerts or SMS related to transactions
Mobile wallet companies like Paytm, PhonePe, Amazon Pay and others will have to ensure that their users register for SMS alerts, emails and notifications to get transaction related information so that they report any fraud immediately.
Mobile wallet companies will have to setup 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 identical 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 unauthorised 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.