Customer Compensation Policy


  • English
  • Hindi
  • Marathi
  • Bengali

Effective date: 19th May 2020

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)

Erroneous/unauthorised direct debit to an account raised by the Bank


  • Required Action: Approach the bank within a maximum period of 45 days, post erroneous/ unauthorised debit


  • 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

Turn Around Time: Verification
Third party involvement - Within 1 month
No third party involvement - Within 7 working days
Immediately post verification
Within 7 Working days (from the completion of the verification)

*Customer liability will be as per RBI guidelines

Erroneous/Unauthorized debit raised by the Bank on fraudulent or other electronic banking transaction in cases involving:

Fraud/negligence on the part of the Bank i.e. either committed by the Bank staff or by the Bank Vendor (irrespective of whether the loss/fraudulent transaction is reported by the customer or not)

Erroneous/Unauthorized debit raised by the Bank on fraudulent or other electronic banking transaction in cases involving:

Negligence by a customer (such as where he has shared the payment credentials etc.)

Erroneous/Unauthorized debit raised by the Bank on fraudulent or other electronic banking transaction in cases involving:

Third party breach where the fault lies neither with the bank nor with the customer but lies elsewhere in the system. Based on the time taken by the customer to report the fraudulent transaction from the date of receiving the Bank communication, below are the 3 scenarios:

Scenario 1: Within 3 working daysScenario 2: Within 4-7 working daysScenario 3: Beyond 7 working days

Automated Teller Machines (ATMs), including Micro-ATMs

Card Transaction

Immediate Payment System (IMPS)

Unified Payments Interface (UPI)

National Automated Clearing House (NACH)


Delay in credit / return of NEFT / RTGS transactions on part of the bank’s systems and/or processes:

Mis-selling of third party products

  • 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

In pursuance of the above Right, the Bank will –

  • 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

Do’s and Don’t’s


  • Protect the mobile phone via password
  • Set a maximum incorrect password input limit
  • Look for https while logging in the Bank website
  • Employ a strong password for login, e.g. use special characters, numbers etc. in the password
  • Update/change your password and passcode at regular intervals
  • Verify transactions in account statements regularly
  • Verify transaction communication received via SMS
  • Use nomination facility
  • Immediately intimate the Bank/Branch for:
    • Change in address/mobile number
    • Erroneous / unauthorized transaction
    • Loss of Debit Card
  • Report lost/stolen phone to service provider/police


  • Never transfer funds without validation of recipient
  • Never share the Login details/PIN/OTP/Transaction IDs/Passcode/confidential information over phone/internet
  • Do not store any sensitive information such as passcode, password, debit card details, etc. in a folder on phone/computer or on paper etc.
  • Never forget to intimate us for change in address/mobile number to avoid mis-delivery of transaction communication
  • Never click on embedded links from unknown sources on social networking sites/emails
  • Employ caution on using Bluetooth and WiFi in public places


  • 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 labor 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
  • In the event of any conflict between the "Customer Compensation Policy" of the PPBL in English language listed at and the translated version of the "Customer Compensation Policy" in concerned local language updated on PPBL website, the English version shall prevail.

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 Unauthorized Electronic Banking Transactions dated July 6, 2017
  • RBI circular on Harmonisation of Turn Around Time (TAT) and customer compensation for failed transactions using authorised Payment Systems dated September 20, 2019