Customer Compensation Policy

Introduction and Objectives

This policy specifies the compensation for directly measurable financial losses which customers might have incurred due to deficiency in services on part of the Bank. The Bank will be transparent, fair and efficient in providing compensation to its customers.

The commitments under this policy are without prejudice to any right the Bank will have in defending its position before any forum duly constituted to adjudicate banker-customer disputes.

Required Action /Compensation /Turnaround Time (TAT)

  • Customer
  • Required Action: Approach the bank within a maximum period of 45 days, post erroneous/ unauthorised debit
  • Bank
  • Required Action: Entry to be reversed on a best effort / recovery basis immediately after due verification

    Compensation: Compensation for interest loss at the existing savings rate on the recoverable amount subject to a maximum cap of Rs.2000*/-
    Compensation to the extent of the financial loss to the customer by way of reduction in the minimum balance applicable for payment of interest on savings bank deposit or return of an issued cheque due to insufficient balance

    TAT: Verification
    Third party involvement - Within 1 month
    No third party involvement - Within 7 working days
    Reversal:
    Immediately post verification
    Compensation:
    Within 7 Working days (from the completion of the verification)
  • Customer
  • Required Action: Approach the bank within a maximum period of 7 days, post the transaction
  • Bank
  • Required Action: Reverse the transaction on the best effort / recovery basis and give value- dated credit to protect the interest of the customer

    Compensation: No additional compensation*

    TAT: Reversal: Within 2 Working days (post customer intimation to the Bank))
  • Customer
  • Required Action: Customer Liability Zero liability*
  • Bank
  • Required Action: Entry to be reversed immediately after due verification

    Compensation: In addition to full refund of the erroneous/ unauthorised debit amount, compensation will be provided for interest loss at the existing savings rate on the entire transaction value subject to a maximum cap of Rs.2000*/-

    TAT: Verification: Within 7 working days
    Reversal:Immediately post verification or within 10 working days from the date of notification by the customer, whichever is lower
    Compensation: Within 7 Working days (from the completion of the verification)
  • Customer
  • Required Action: Approach the bank as soon as the customer becomes aware of the unauthorised debit
    Customer Liability: Customer to bear the entire loss until he/she reports the unauthorised transaction to the bank. Any loss occurring after the reporting of the unauthorised transaction shall be borne by the bank*
  • Bank
  • Required Action: Entry to be reversed on a best effort / recovery basis immediately after due verification for the unauthorised transaction value. Entry to be fully reversed for any additional unauthorised transaction which happens post the reporting to the Bank

    Compensation: Compensation for interest loss at the existing savings rate on the unauthorised transaction value after the incidence is reported to the Bank subject to a maximum cap of Rs.2000*/-

    TAT: Verification: Within 7 working days
    Reversal: Immediately post verification or within 10 working days from the date of notification by the customer, whichever is lower
    Compensation: Within 7 Working days (from the completion of the verification)
  • Customer
  • Required Action: Approach the bank as soon as the customer becomes aware of the unauthorised debit

    Customer Liability*
    Scenario 1: Zero liability
    Scenario 2: The transaction value or Rs.5000*/-, whichever is lower
    Scenario 3: Full transaction value
  • Bank
  • Required Action:
    Scenario 1: Bank to reverse entry immediately after due verification
    Scenario 2: Bank to reverse entry for the residual transaction value above Rs.5000/- after due verification
    Scenario 3: No entry reversal to be done

    Compensation:
    Scenario 1: Compensation for interest loss at the existing savings rate on the entire transaction value subject to a maximum cap of Rs.2000*/-
    Scenario 2: Compensation for interest loss at the existing savings rate on the residual transaction value above Rs.5000*/- subject to a maximum cap of Rs.2000*/-
    Scenario 3: No compensation for interest loss

    TAT: Verification: Within 1 month
    Reversal: Immediately post verification
    Compensation: Within 7 Working days (from the completion of the verification)

  • Customer
  • Required Action: Complaint within 30 days of the failed ATM transaction
  • Bank
  • Required Action: The Bank to investigate and convey its decision on accepting or declining the request. On acceptance of the request, customer account to be credited immediately with the failed transaction amount

    Compensation: Compensation for interest loss at the existing savings rate on the failed transaction amount subject to a maximum cap of Rs.2000*/-

    In the event of delay of passing on the credit, compensation of Rs.100/- per day after 7 working days from the date of receipt of complaint will be credited to the customer's account automatically without any claim from the customer, on the same day when the Bank affords the credit for the failed ATM transaction

    TAT: Verification: 7 Working days (from the receipt of customer complaint)
    Credit to the account: Immediately post verification

  • Customer
  • Required Action: Approach the bank within a maximum period of 45 days, post the due date of credit
  • Bank
  • Required Action: The Bank to investigate and convey its decision on accepting or declining the request. On acceptance of the request, customer account to be credited immediately, if transaction is still pending

    Compensation: Compensation for interest loss at the existing savings rate on the transaction amount for the delay i.e. from the date when the amount was due for credit till the date of actual credit to the customer account subject to a maximum cap of Rs.2000*/-

    Compensation to the extent of the financial loss to the customer by way of reduction in the minimum balance applicable for payment of interest on savings bank deposit or return of an issued cheque due to insufficient balance

    TAT: Verification: Third party involvement (including other banks) - Within 1 month
    No third party : involvement - Within 7 working days
    Credit to the account : Immediately post verification
    Compensation : Within 7 Working days (from the completion of the verification)

*Customer liability will be as per RBI guidelines
Mis-selling of third party products

Bank’s Obligations • In the event of Bank receiving of any complaint from the customer regarding mis-selling of the third party products by the Bank, or about having engaged in any improper conduct or about having acted in violation of any Code adopted by the Bank, the Bank will take appropriate steps to investigate and to handle the complaint within one month of the receipt of the complaint

• In cases in which lapses by the Bank employees are established, the Bank will compensate the customer suitably, based on the facts and circumstances

Customer’s Responsibility

Scenarios of Customer’s Responsibility The Bank will not be responsible for loss to customers in cases where

  • Customer was careless in keeping the cards, PIN/other security information and did not follow the "Dos and Don'ts" issued by the Bank (mentioned below), until the Bank has been notified by the customer

  • Customer acts fraudulently and/or without reasonable care resulting in loss to him/her

• Bank will also not be responsible for losses arising out of misuse of lost PIN, compromise of passwords or confidential information, until the time the Bank has been notified of such loss/compromise and has taken steps to prevent its misuse

• In case of a wrong credit to a customer’s account, the Bank reserves the right to debit the account for reversing the wrongly posted credit without payment of any compensation

“Dos and Don’ts” for the Customer

  • Dos
  • Don’ts
  • • Protect the mobile phone via password
  •  
  • • Set a maximum incorrect password input limit
  • • Never transfer funds without validation of recipient
  • • Look for https while logging in the Bank website
  • • Never share the Login details/PIN/OTP/Transaction IDs/Passcode/confidential information over phone/internet
  • • Employ a strong password for Paytm login, e.g. use special characters, numbers etc. in the password
  • • Do not store any sensitive information such as Paytm passcode, password, debit card details, etc. in a folder on phone/computer or on paper etc.
  • • Update/change Paytm password and Paytm passcode at regular intervals
  • • Never forget to intimate us for change in address/mobile number to avoid misdelivery of transaction communication
  • • Verify transactions in account statements regularly
  • • Never click on embedded links from unknown sources on social networking sites/emails
  • • Verify transaction communication received via SMS
  • • Employ caution on using Bluetooth in public places
  • • Use nomination facility
  •  
  • • Immediately intimate the Bank/Branch for:
        - Change in address/mobile number
        - Erroneous/unauthorised transaction
        - Loss of Debit Card/Demand Draft etc.
  •  
  • • Report lost/stolen phone to service provider/police


Disclaimer

• The interest amount, mentioned under compensation, will only be paid if the account is a 'Savings Bank Account' and not a wallet, and the maximum time period for establishing customer liability for the Bank is 1 month

• In the event of delay of passing on the credit within the above stipulated timeframes, the customer can apply for a compensation for the delay and the Bank will take appropriate steps to investigate and compensate the customer suitably, based on the circumstances of the delay

• Transactions reported as erroneous by customers in respect of debit card operations, which require specific reference to a merchant establishment will be handled as per Chargeback rules laid down by card association i.e. Rupay / VISA / MasterCard International. Currently the chargeback investigation on account of chargeback disputes range between 45 to 90 days. The Bank will provide explanation and, if necessary, documentary evidence to the customer within a maximum period of 60 days.

• The bank will not be liable to compensate customers for delayed credit if some unforeseen event (including but not limited to civil commotion, sabotage, lockout, strike or other labour disturbances, accident, fires, natural disasters or other “Acts of God”, war, damage to the bank’s facilities or of its correspondent bank(s), absence of the usual means of communication or all types of transportation, etc.) beyond the control of the bank prevents it from performing its obligations within the specified service delivery parameters

• Notwithstanding anything contained here above, the Bank shall not pay any compensation in following cases:

• Delays on account of non-functioning of business due to factors beyond the control of the Bank. The period covered by such events shall be omitted for calculation of delay etc.

• Where the issues are sub judice and pending before Courts, Ombudsman, Arbitrator, Government and matter put on hold due to stay

• The policy will be reviewed by the Board as and when required or at least annually to incorporate regulatory updates/changes, if any

The acceptance of the compensation by the customers under Paytm Payments Bank Customer Compensation Policy will be deemed to be final settlement of all issues arising out of grievances for which compensation is claimed



Regulatory References

• RBI Master Circular on Customer Service in Banks dated July 1, 2015

• Draft Circular on Customer Protection dated August 11, 2016

• IBA Model Compensation policy

• IBA Fair Practice Code

• IBA Model Customer Rights Policy

• BCSBI Code of Commitment to Customers

• RBI circular on 'Operation guidelines for Payments Bank' dated October 6, 2016

• RBI circular on customer Protection – Limiting Liability of Customers in Unauthorised Electronic Banking Transactions dated July 6, 2017

© Copyright 2017, Paytm Payments Bank
© Copyright 2017, Paytm Payments Bank