RBI Issues Circular On Levying Unfair Interest Charges On Customers

It is now mandatory for all mobile wallet companies to encourage their customers to register for SMS alerts, emails, and notifications

The growth of digitization in the country has increased the use of e-wallet transactions as well as third-party payment systems. With Covid-19 precautions in place, people are increasingly opting for contactless exchange of money, thereby switching to digital methods of payment. While Covid-19 have pushed us towards a cashless world, it has now become even more important to be cautious while conducting digital transactions.

With so many fraudsters actively defrauding people, the question of the hour is – How do we tackle such unauthorised transactions through e-wallets and how do we get the stolen money back?

To answer these questions, a few months back, the Reserve Bank of India (RBI) had issued new guidelines to protect e-wallet users, in case of a fraudulent transaction.

Although most wallets follow an effective two-factor authentication mechanism for transferring money and require a password as well as a One Time Password (OTP) for login, there still exists a gap in terms of security. For example, using a public Wi-Fi connection can expose you to several risks of getting your precious data stolen.

Also known as a mobile wallet, e-wallets are a digital version of the physical wallet, allowing users to make electronic transactions with a few clicks. From booking movie tickets, paying utility bills, ordering food online to making payments for an online purchase – there are so many things we can do with e-wallets. The number of people using e-wallets is increasing every day. With the ever-increasing usage of e-wallets, frauds too, are on the rise.

These fresh guidelines have made e-wallets safer and more secure.

Limiting Wallet-user Liability in Case of Frauds

In case a fraudulent transaction has taken place through e-wallet, you will have to report the same immediately to avoid any further losses. If you report the loss to the company within three days, the e-wallet company will take necessary action to curtail the loss.

Setting Timelines for Refunds

In case you have reported the fraudulent transaction to the e-wallet company, the lost amount will be refunded to your mobile wallet after the due processes are followed and if all criteria are met. Additionally, the company would have to resolve all disputes within 90 days.

SMS Alerts are a Must Now

It is now mandatory for all mobile wallet companies to encourage their customers to register for SMS alerts, emails, and notifications. The ones who subscribe to alerts get real-time updates on each transaction and hence, it helps customers to report fraud almost instantly.

Reporting Fraud is a No-brainer Now!

As stated by RBI, to enable easy reporting of frauds, the company must have a dedicated helpline, website, SMS, and email address that work round the clock. They must also provide a direct link on their online payment apps as well as websites to allow customers to register grievances. Besides these, a prompt auto-response shall also be sent, thereby acknowledging the complaint along with the specified complaint number.

While the RBI is striving hard to protect customers at all costs, here are a few things that you must keep in mind to ensure your safety while using e-wallets:

● Report fraud as soon as you spot it
● Avoid auto-saving card details
● Abstain from using public Wi-Fi networks
● Check your statements regularly

So, the next time you witness a fraudulent transaction through the wallet, follow these simple steps to report it immediately and protect your finances.

(The author is Chief Risk Officer at Bajaj Finance Ltd; views expressed are personal)