RBI guidelines on mobile wallets

BE/RBINOTE/29/2019

If you have lost money from Paytm, PhonePe or other mobile wallets, here is certain new RBI rules that one must be aware of.  This has been brought in in order to bring more clarity as to what happens when unauthorised or fraudulent transactions take place on mobile wallets like Paytm, PhonePe or other Prepaid Payment.

• For Instrument (PPI) issuers, the Reserve Bank of India (RBI) has set new guidelines which is 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.

1. All mobile wallet players will have to 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.
2. All mobile wallet users will have to subscribe to alerts or SMS related to transactions of 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.
3. Mobile wallet companies should setup a 24/7 customer care helpline to report fraud or any loss or theft (or hack) of the mobile wallet account.
4. The level of security and liability related to debit/credit cards are kept identical
5. ​In case anyone 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.
6. 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.
7. Even if the user does not report a fraudulent transaction, the mobile wallet company has to initiate a refund.
8. 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.
9. 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.
10. All refund cases must be solved by the company within 10 days of reporting of fraud
11. All complaints or disputes need to be resolved within 90 days irrespective of who is at fault
12. If the complaint is not solved within 90 days then the company is liable to refund the fraudulent amount to the user.
13. 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 stringent RBI guidelines.  Let us wait and see.