CUSTOMER PROTECTION POLICY
(Reviewed and Adopted by the Board as on 21/10/2019)
Increase in transactions using prepaid payment instruments (PPIs) has multiplied the associated risks and hence Customer Protection against unauthorized electronic payment transactions has assumed greater importance. The Reserve Bank of India (RBI) vide its circular RBI/2018 - 19/101/DPSS.CO. PD.No. 1417 /02.14.006/2018-19 has laid down the provisions for determining the customers’ liability in unauthorized electronic payment transactions resulting in debit to their wallet/cards.
RBI requires PPI issuers to formulate a policy covering aspects of customer protection, including the mechanism of creating customer awareness on the risks and responsibilities, and customer liability arising in specific scenarios of unauthorised electronic transactions.
The objective of this policy is to provide a comprehensive guideline to protect customers in case of any unauthorised transactions undertaken using the Dhani Pay PPIs issued by Transerv.
Categories of transactions:
Electronic payment transactions using Dhani Pay PPIs are divided into two categories:
Roles & Responsibilities of TranServ
Obligations of Customer
Liability of a Customer
A customer’s entitlement to zero liability will arise where the unauthorized transaction occurs in the following events:
A Customer Liability for the loss occurring due to unauthorized transaction where the deficiency lies neither with TranServ nor with the customer but lies elsewhere in the system (Third Party Breaches), and the customer notifies TranServ after three (3) days and within seven (7) days of receipt of transaction communication will be equal to transaction value or Rs.10,000 per transaction, whichever is lower.
Complete Liability of the customer:
Customer will bear the entire loss in cases where
Proof of Customer Liability
TranServ has a process of second factor authentication for all card transactions, as regulated by the RBI. TranServ has onus to prove that all logs / proofs / reports for confirming two factor authentications is available. Any unauthorized transaction which has been processed post second factor authentication known only to the customer would be considered as sufficient proof of customer’s involvement / consent in effecting the transaction.
Reporting and Monitoring
TranServ will put in place a mechanism for reporting the customer liability cases to the Board or its Committee. The reporting will inter-alia, include volume/ number of cases and the aggregate value involved and distribution across various categories of case. Additionally, TranServ will put in place a mechanism to enable review of such transactions and examine the effectiveness of the measures taken.
Company to given an option to generate / receive account statements for at least past 6 months. The account statement shall, at the minimum, provide details such as date of transaction, debit / credit amount, net balance and description of transaction. Additionally, company shall provide transaction history for at least 10 transactions.
Review of the Policy
The Policy will be reviewed annually by the Board, or as and when required, including in cases of changes in the business or regulatory environment.