The Ombudsman Scheme for Digital Transactions, 2019
The Reserve Bank of India has introduced an Ombudsman Scheme for Digital Transactions, 2019 (the Scheme). It is an expeditious and cost-free apex level mechanism for resolution of complaints regarding digital transactions undertaken by customers of the System Participants as defined in the Scheme. The Scheme is being introduced under Section 18 Payment and Settlement Systems Act, 2007, with effect from January 31, 2019.
Who is the Ombudsman for Digital Transactions?
The Ombudsman for Digital Transactions is a senior official appointed by the Reserve Bank of India to redress customer complaints against System Participants as defined in the Scheme for deficiency in certain services covered under the grounds of complaint specified under Clause 8 of the Scheme.
How many Ombudsman for Digital Transactions have been appointed and where are they located?
As on date, 21 Ombudsman for Digital Transactions have been appointed with their offices located mostly in state capitals. The addresses and contact details of the offices of the Ombudsman for Digital Transactions is provided under Annex I of the Scheme.
Which are the Entities covered under the Scheme?
The Scheme has been made applicable to System Participants as defined in Clause 3 (11) of the Scheme.
What are the grounds of complaints?
As per Clause 8 of the Scheme, the Ombudsman for Digital Transactions shall receive and consider complaints on deficiency in services against System Participants defined in the Scheme on any of the following grounds:
4.(1) Prepaid Payment Instruments:Non-adherence to the instructions of Reserve Bank by System Participants about Prepaid Payment Instruments1 on any of the following:
4.(2) Mobile / Electronic Fund Transfers:Non-adherence to the instructions of the Reserve Bank on Mobile / Electronic fund transfers by System Participants on any of the following:
4.(3)Non-adherence to instructions of Reserve Bank / respective System Provider to System Participants, on payment transactions through Unified Payments Interface (UPI) / Bharat Bill Payment System (BBPS) / Bharat QR Code / UPI QR Code on the following grounds:
4.(4)Non-reversal / failure to reverse within reasonable time, funds wrongly transferred to the beneficiary account due to lapse at the end of System Participant.
4.(5)Any other matter relating to the violation of the directives including on fees / charges, if any, issued by the Reserve Bank in relation to digital transactions.
NOTEIn respect of digital transactions done on third party platforms, it will be the responsibility of the Payment Service Provider to resolve customer disputes arising out of such transactions.
When can one file a complaint?
For redressal of grievance, the complainant must first approach the System Participant (as defined in the Scheme) concerned. If the System Participant does not reply within a period of one month after receipt of the complaint, or rejects the complaint, or if the complainant is not satisfied with the reply given, the complainant can file the complaint with the Ombudsman for Digital Transactions within whose jurisdiction the branch or office of the System Participant complained against, is located. For complaints arising out of services with centralized operations, the same shall be filed before the Ombudsman for Digital Transactions within whose territorial jurisdiction the billing / declared address of the customer is located.
When will one's complaint not be considered by the Ombudsman?
One's complaint will not be considered under the following circumstances:
What is the procedure for filing the complaint before the Ombudsman?
One can file a complaint with the Ombudsman by writing on a plain paper and sending it to the concerned office of the Ombudsman by post/fax/hand delivery. One can also file it by email to the Ombudsman for Digital Transactions. (For contact details please click here) A complaint form along with the scheme is also available on RBI's website, though, it is not mandatory to use this format.
Where can one lodge his/her complaint?
One may lodge complaint with the Office of the Ombudsman for Digital Transactions within whose jurisdiction the branch or office of the System Participant complained against, is located (For jurisdiction of the Ombudsman please click here). For complaint arising out of services with centralized operations, complaints can be filed with the office of the Ombudsman for Digital Transactions within whose territorial jurisdiction the billing / declared address of the customer is located.
Can a complaint be filed through an authorized representative?
Yes. The complaint can be filed through an authorized representative of the complainant (other than an advocate).
Is there any cost involved in filing a complaint with the Office of the Ombudsman for Digital Transactions?
No. There is no charge or any fee for filing / resolving customers’ complaints.
Is there any limit on the amount of compensation that the Ombudsman can sanction?
The compensation amount, if any, which can be awarded by the Ombudsman, for any loss suffered by the complainant, is limited to the amount arising directly out of the act or omission or commission of the System Participant, or two million rupees whichever is lower. The compensation shall be over and above the disputed amount.
Can compensation be claimed for mental agony and harassment?
The Ombudsman may award compensation not exceeding rupees 0.1 million to the complainant for mental agony and harassment. The Ombudsman, while giving the compensation, shall take into account the loss of time, expenses incurred by the complainant, harassment and mental anguish suffered by the complainant.
What are the details required in a complaint to the Ombudsman?
The complainant is required to give details such as,
What happens after a complaint is received by the Ombudsman?
The Ombudsman endeavours to promote settlement of the complaint through conciliation/ mediation by agreement between the complainant and the System Participant. If the terms of settlement (offered by the System Participant) are acceptable in full and final settlement of one's complaint, the Ombudsman will pass an order as per the terms of settlement which becomes binding on the System Participant and the complainant. If the System Participant is found to have adhered to the extant norms and practices in vogue and the complainant has been informed to this effect through appropriate means and complainant’s objections, if any, are not received by the Ombudsman within the time frame provided, the Ombudsman may pass an order to close the complaint.
Can the Ombudsman reject a complaint at any stage?
Yes. As per Clause 13 of the Scheme, the Ombudsman may reject a complaint at any stage on the following grounds:
What happens if the complaint is not settled by agreement?
If the Ombudsman is satisfied that there is indeed a deficiency of service on the part of the System Participant and the complaint is not settled by agreement within a specified period as allowed by the Ombudsman, he/she proceeds to pass an Award. Before passing an Award, the Ombudsman will provide reasonable opportunity to the complainant and the System Participant to present their case. It is upto the complainant to accept the Award in full and final settlement or reject it.
Is there any further recourse available if one rejects the Ombudsman’s decision?
Yes, the Scheme provides the appellate mechanism for the complainant as well as the System Participant.
Any person aggrieved by an Award issued under Clause 12 or by the decision of the Ombudsman rejecting the complaint for the reasons specified in sub-clause (d) to (g) of Clause 13 of the Scheme, can approach the Appellate Authority.
The Appellate Authority is vested with a Deputy Governor-in-Charge of the department of the RBI implementing the Scheme. The address of the Appellate Authority is:
The Appellate Authority
Ombudsman Scheme for Digital Transactions
Consumer Education and Protection Department
Reserve Bank of India
First Floor, Amar Building, Fort, Mumbai 400 001.
The complainant also has the option to explore other recourse and/or remedies available as per the law.
Is there any time limit for filing an appeal?
One can file appeal against the Award or the decision of the Ombudsman rejecting the complaint, within 30 days of the date of receipt of communication of Award or rejection of the complaint. The Appellate Authority may, if satisfied that the applicant had sufficient cause for not making an appeal within prescribed time, may allow a further period not exceeding 30 days.
19. How does the Appellate Authority deal with the appeal?
The appellate authority may:
ATM/White Label ATM
(Updated as on January 03, 2019)
What is an Automated Teller Machine (ATM)?
An ATM is a computerized machine that provides the customers of banks the facility of accessing their account for dispensing cash and to carry out other financial & non-financial transactions without the need to visit a bank branch.
What are White Label ATMs (WLAs)?
ATMs set up, owned and operated by non-banks are called WLAs. Non-bank ATM operators are authorized under the Payment & Settlement Systems Act, 2007 by the Reserve Bank of India (RBI). The list of authorised WLA Operators is available on the RBI website at the link https://www.rbi.org.in/Scripts/PublicationsView.aspx?id=12043
As a customer, is there any difference in facilities available at a bank ATM and a WLA?
For a customer, using a WLA is just like using an ATM of any other bank (bank other than card issuing bank) except that the acceptance of cash deposit and few value added services are not permitted at the WLAs.
What has been the rationale for allowing non-bank entities to set up WLAs?
The rationale of allowing non-bank entity to set up White Label ATMs has been to increase the geographical spread of ATM for increased / enhanced customer service, especially in rural areas.
What are the services / facilities available at ATMs / WLAs?
In addition to cash dispensing, ATMs / WLAs may offer many other services / facilities to customers. Some of these services include:.
What are the pre-requisites for transacting at an ATM / WLA?
For transacting at an ATM / WLA, the customer should have a valid card and Personal Identification Number (PIN).
What type of cards can be used at an ATM / WLA?
The ATM / ATM cum debit cards, credit cards and prepaid cards, as permitted by the issuer, can be used at ATMs/WLAs for various transactions.
What is Personal Identification Number (PIN)?
PIN is the numeric password which is separately mailed / handed over to the customer by the bank while issuing the card. Most banks require the customers to change the PIN on the first use. Customer should not disclose PIN to anybody, including to bank officials. Customers should change the PIN at regular intervals.
Can cards issued by a bank in India be used at any ATM / WLA in the country?
Yes, the cards issued by banks in India may be used at any ATM / WLA in the country.
What is an On-Us and Off-Us transaction?
A transaction carried out at an ATM of the card issuing bank is called as On-Us transaction. A transaction carried at an ATM of the bank which is different from the card issuing bank or a transaction at a WLA is called an Off-Us transaction. For instance, if a card issued by bank A is used at an ATM of bank A then it is an On-Us transaction; if the card issued by bank A is used at a WLA or at an ATM of bank B, it is an Off-Us transaction.
Are customers entitled to any free transactions at ATMs?
Yes, with effect from November 01, 2014, a bank must offer to its savings bank account holders a minimum number of free transactions at ATMs as under:
Can a bank offer more number of free transactions at ATMs?
RBI has mandated minimum number of free transactions at ATMs. Banks may offer more number of transactions free of cost to their customers.
Is the above prescription of free transactions applicable to a Basic Savings Bank Deposit Account (BSBDA) also?
The above does not apply to BSBDA as the number of withdrawals from BSBDA is subject to the conditions associated with such accounts.
My bank has counted balance enquiry at ATM in calculating number of free transactions. Why?
The above prescription of number of free transactions is inclusive of both financial and non-financial transactions at ATMs.
How can one know if the ATM location is metro or non-metro?
ATM installing banks have been advised to indicate clearly at each ATM location that the ATM is situated in a ‘metro’ or a ‘non-metro’ location using appropriate means (message displayed on the ATM / sticker / poster, etc.) to enable the customer to identify the status of the ATM in relation to availability of number of free transactions.
Are customers charged for transactions at ATMs?
Yes, customers can be charged for transactions at ATMs over and above the mandated number of free transactions (as indicated in answer to Q. 11 above). However, presently, these charges cannot exceed a maximum of ₹20/- per transaction (plus applicable taxes, if any) by his / her bank.
What are the charges prescribed by RBI for use of credit cards at ATMs and for withdrawal at ATM located abroad?
The service charges for the following types of cash withdrawal transactions may be determined by the banks themselves:
(a) cash withdrawal with the use of credit cards.
(b) cash withdrawal in an ATM located abroad.
What steps should a customer take in case of a failed ATM transaction at other bank ATMs / WLAs, when his / her account is debited?
Irrespective of use of card at an own bank ATM / other bank ATM / WLA, the customer should lodge a complaint with the card issuing bank at the earliest.
From where the customer can get the contact numbers for lodging a complaint?
Banks are required to display the name/s and the contact number/s of concerned officers / toll free numbers / help desk numbers in the ATM premises. Similarly, in WLAs, contact numbers of officials / toll free numbers / helpline numbers are also displayed for lodging any complaint regarding failed / disputed transactions.
Is there any time limit for the card issuing bank to recredit the customer’s account for a failed ATM / WLA transaction indicated under Q. No. 18?
As per the RBI instructions (DPSS.PD.No.2632/02.10.002/2010-2011 dated May 27, 2011), in case of a failed ATM transaction, the card issuing bank has been mandated to resolve the customer complaint by re-crediting the customer’s account within 7 working days from the date of complaint.
Are the customers eligible for compensation for delays beyond 7 working days in resolving a complaint?
Yes. Effective July 1, 2011, the card issuing bank has to pay compensation of Rs. 100/- per day for delay in re-crediting the customer’s amount beyond 7 working days from the date of receipt of complaint regarding failed ATM transactions. The compensation has to be credited to the account of the customer without any claim being made by the customer. However, in order to become eligible for compensation, the customer is required to lodge the complaint within 30 days of the transaction.
What is the course of action for the customer if the complaint is either not addressed by his / her bank within the stipulated time or not addressed to his / her satisfaction?
Within 30 days of receiving reply from the bank or in case of non-receipt of a reply from the bank within 30 days of lodging the complaint, the customer can take recourse to the Banking Ombudsman. The details of Office of Banking Ombudsman are available at the link: https://rbi.org.in/Scripts/AboutUsDisplay.aspx?pg=BankingOmbudsmen.htm
What should be done to the ATM card when its validity has expired or the underlying account is closed?
A card upon expiry of its validity or closure of the underlying account, should be cut into four pieces through the magnetic strip / chip before disposing it off.
How should the customer keep his / her ATM / WLA transaction secure?
Customers should observe the following Do’s and Don’ts to keep their transactions at ATMs / WLAs safe and secure :
What should be done if card is lost / stolen?
The customer should contact the card issuing bank immediately on noticing the loss / theft of the card and should request the bank to block the card.
What are Magnetic Stripe cards and EMV Chip & PIN cards?
The Magnetic Stripe card stores card data on magnetic stripe present on the card while the data in an EMV Chip & PIN card is stored in a chip. The EMV Chip & PIN cards are considered to be safer when compared to Magnetic Stripe cards.
What is the mandate for banks for issuing Magnetic Stripe cards or EMV Chip & PIN cards?
Banks have been instructed to convert all existing Magnetic Stripe cards to EMV Chip & PIN cards before December 31, 2018. If the card holder has not got his / her magnetic stripe card replaced by an EMV Chip & PIN card, he / she should immediately approach his / her bank branch to get the replacement.
Prepaid Payment Instruments (PPIs)
(Updated as on December 12, 2018)
Under what powers has the Reserve Bank of India (RBI) issued the Master Direction (MD) on Issuance and Operations of Prepaid Payment Instruments (PPIs)?
In exercise of the powers conferred under Section 18 read with Section 10(2) of the PSS Act, 2007, RBI has issued these Directions.
Who can issue and operate PPIs in India?
A company incorporated in India and registered under the Companies Act, 1956 / Companies Act, 2013 can issue and operate PPIs after receiving authorisation from RBI.
How many PPI issuers have been approved by RBI? Where can I find the list of authorised bank and non-bank PPI issuers?
The list is available on the RBI website at the link https://www.rbi.org.in/Scripts/PublicationsView.aspx?id=12043 and https://www.rbi.org.in/Scripts/bs_viewcontent.aspx?Id=2491.
What are PPIs?
PPIs are instruments that facilitate purchase of goods and services, including financial services, remittance facilities, etc., against the value stored on such instruments. PPIs that can be issued in the country are classified under three types viz. (i) Closed System PPIs, (ii) Semi-closed System PPIs, and (iii) Open System PPIs.
Who is an issuer of PPI?
Ans. PPI issuer is an entity operating / participating in a payment system for issuing PPIs to individuals / organisations. The money so collected is used by the entity to make payment to the merchants who are part of the acceptance arrangement and for facilitating funds transfer / remittance services.
Who is a holder of a PPI?
A holder is an individual / organisation who obtains / purchases PPI from the PPI issuer and uses the same for purchase of goods and services, including financial services, remittance facilities, etc. However, in case of a Gift PPI, the targeted beneficiary (though not being a purchaser) can also be a holder.
What are various types of PPIs?
Closed System PPIs: These PPIs are issued by an entity for facilitating the purchase of goods and services from that entity only and do not permit cash withdrawal. As these instruments cannot be used for payments or settlement for third party services, the issuance and operation of such instruments is not classified as payment system requiring approval / authorisation by the RBI.
Semi-closed System PPIs: These PPIs are issued by banks (approved by RBI) and non-banks (authorized by RBI) for purchase of goods and services, including financial services, remittance facilities, etc., at a group of clearly identified merchant locations / establishments which have a specific contract with the issuer (or contract through a payment aggregator / payment gateway) to accept the PPIs as payment instruments. These instruments do not permit cash withdrawal, irrespective of whether they are issued by banks or non-banks.
Open System PPIs: These PPIs are issued only by banks (approved by RBI) and are used at any merchant for purchase of goods and services, including financial services, remittance facilities, etc. Cash withdrawal at ATMs / Points of Sale (PoS) terminals / Business Correspondents (BCs) are also allowed through such PPIs.
Does a holder earn any interest on PPI balances?
No interest is payable on PPI balances.
How can a PPI be loaded?
PPIs can be loaded / reloaded by cash, by debit to a bank account, by a credit / debit card, or from other PPIs. The loading / reloading of PPIs shall be through payment instruments issued by entities regulated in India and shall be in Indian Rupees (INR) only. Banks and non-banks are permitted to issue and reload such payment instruments through their authorised outlets / branches / ATMs or through their authorised / designated agents.
Is there any limit on loading of PPIs by cash or electronic means?
Yes, the cash loading of PPIs is limited to ₹ 50,000/- per month subject to overall limit of the PPI. The limit on loading of PPIs via electronic / online means is subject to overall limit of the PPI.
In what form can a PPI can be issued?
The PPIs may be issued as cards, wallets, and any such form / instrument which can be used to access the PPI and to use the amount therein. PPIs in the form of paper vouchers shall no longer be issued.
In what form prepaid meal instruments can be issued? Are they allowed to be reloaded?
Like any PPI, prepaid meal instruments may be issued as cards, wallets, and in any such form or instrument (except in the form of paper vouchers) which can be used to access the PPI and to use the amount therein. Prepaid meal instruments can be issued only as semi-closed PPIs without cash withdrawal and funds transfer.
Can a remitter create new PPIs for each cash based remittance?
PPI issuers, including their agents, shall not create new PPIs each time, for facilitating cash-based remittances to other PPIs / bank accounts. PPIs created for previous remittance by the same person shall be used.
Can co-branded PPIs be issued?
Yes. PPIs can be issued on solo basis by a PPI issuer or on co-branded basis with another entity.
Who can be a co-branding partner of the PPI Issuer?
The co-branding partner shall be a company incorporated in India and registered under the Companies Act, 1956 / Companies Act, 2013. In case the co-branding partner is a bank, then the same shall be a bank licensed by RBI. In case of co-branding arrangement between a bank and a non-bank entity, the bank shall be the PPI Issuer. In case both the entities are non-banks, one of them will be pre-assigned, in advance, the role of issuer among themselves.
In case of a co-branded card, who will be responsible for addressing all customer service aspects?
Between the two partners, one will be designated as a PPI issuer who shall be responsible for addressing all customer service aspects relating to the co-branded PPI.
Can PPIs be used for cross-border outward transactions? What are transaction limits and the transactions that are allowed under it?
KYC compliant reloadable semi-closed and open system PPIs, issued by Authorised Dealer Category-I banks, shall be permitted to be used in cross-border outward transactions for permissible current account transactions under FEMA viz. purchase of goods and services. This facility shall be enabled only on explicit request of a PPI holder.
Transaction Limits:
Per transaction limit shall not exceed ₹ 10,000/-.
Per month limit shall not exceed ₹ 50,000/-.
Transactions allowed:
Permissible current account transactions under Foreign Exchange Management Act (FEMA) viz. purchase of goods and services, subject to adherence to extant norms governing such transactions.
Transactions not-allowed:
Can PPIs be used for cross-border inward transactions? What are the transaction limits?
Banks and non-bank PPI issuers, who are Indian agents of the authorised Overseas Principal (OP), are permitted to issue KYC compliant PPIs to beneficiaries of inward remittance under the Money Transfer Service Scheme (MTSS) of the RBI. It means that the entity undertaking this activity needs to be an authorised PPI issuer as well as an Indian Agent under MTSS (authorised by Foreign Exchange Department, RBI).
Amounts up to ₹ 50,000/- from individual inward MTSS remittances are permitted to be loaded or reloaded in PPIs issued to beneficiaries. Any single transaction amount in excess of ₹ 50,000/- shall be paid by credit to a bank account.
I am receiving a cross-border inward remittance of ₹ 75,000/-. Can ₹ 50,000/- be credited in PPI and the remaining in bank account?
No, splitting of credit is not permitted when funds are loaded in PPIs. Since the amount of transaction is more than ₹ 50,000/-, the entire amount has to be credited to bank account.
What are the types of Semi-closed PPIs?
Semi-closed PPIs can be of two types:
What is meant by the word KYC mentioned in the PPI-Master Direction dated October 17 2017 (PPI-MD) at different places like paragraph numbers 7.14, 8.1 (a), 8.2 (c), 9.1 (k), 10.1 (d), etc.?
The meaning of KYC is as defined in paragraph 6 of the PPI-MD.
What is included in minimum details to be obtained in a ‘minimum detail PPI’?
The minimum details shall include mobile number verified with an One Time Pin (OTP) and self-declaration of name and unique identification number of either any of the ‘Officially Valid Document (OVD)’ defined under Rule 2(d) of the PML Rules, 2005, or any of the mandatory documents, as applicable, under the PML Rules, 2005.
What are salient features of ‘minimum detail PPI’?
The salient features of ‘minimum detail PPI’ are as follows:
Can anyone do funds transfer from a ‘minimum detail PPI’?
Funds transfer from a ‘minimum detail PPI’ to bank accounts or to PPIs of same / other issuers shall not be permitted.
How long can a customer hold a ‘minimum detail PPI’? What will happen to the balance after expiry of stipulated time?
A ‘minimum detail PPI’ can be held for a maximum period of 12 months only. These 12 months shall be counted from the day of opening of such a PPI. Within this period of 12 months, it has to be converted into KYC compliant PPIs failing which, no further credit in such PPI shall be allowed. However, the PPI holder shall be allowed to use the available balance. All such PPIs existing as on February 28, 2018 shall be converted into KYC compliant PPIs by February 28, 2019.
Can a closed ‘minimum detail PPI’ be reopened after exhausting the maximum time limit of 12 months?
Reissue of such PPIs using the same mobile number and same minimum details is not allowed.
What happens to outstanding balance if the ‘minimum detail PPI’ is not required anymore and has to be closed?
PPI holder has the option to close the PPI at any time and transfer the outstanding balance to his / her ‘own bank account’ after complying with KYC requirements. The account to which the closure proceeds are to be transferred has to be ‘duly verified by the PPI Issuer’ before allowing such transfer. PPI holder can also transfer the funds ‘back to source’ (source of payment from where the PPI was loaded) at the time of closure.
What is meant by ‘duly verified by the issuer’? How can the PPI issuer be sure that it is the ‘own bank account of the PPI holder’?
PPI issuer is responsible for verifying that the bank account pertains to the PPI holder for which it may devise suitable methods of verification.
What are salient features of a semi-closed ‘KYC compliant PPI’?
The salient features of semi-closed ‘KYC compliant PPI’ are as follows:
Is fund transfer allowed from a semi-closed ‘KYC Complaint PPI’?
Yes, funds transfer is allowed from a ‘KYC Complaint PPI’ within a limit of ₹ 10,000/- per month per holder. However, an enhanced limit of up to ₹ 1,00,000/- per month per beneficiary can be availed if the beneficiary is ‘pre-registered’ by PPI holder. A PPI issuer may, however, set a lower limit after taking into account the risk profile of the PPI holder, other operational risks, etc.
Can a PPI holder close the ‘KYC compliant PPI’? If yes, what will happen to the outstanding amount?
PPI issuers shall give an option to the PPI holders to close the PPI and transfer the balance to bank account as per the applicable limits of this type of PPI. For this purpose, the Issuer shall provide an option at the time of issuing the PPI, to the holder to provide details of pre-designated bank account or other PPI to which the balance amount available in the PPI shall be transferred in the event of closure of PPI, expiry of validity period of such PPIs, etc. At the time of closure, a holder can specify a bank account which is different from pre-designated account given earlier.
What are the types of Open System PPIs?
Open System PPIs can be issued only by banks, who have RBI approval to issue such PPIs. There is only one type of open system PPI i.e. PPI upto ₹1,00,000/- after completing KYC of the PPI holder (KYC compliant PPI).
What are the features of Open System PPIs?
The salient features of Open System PPIs are as follows:
Is there a requirement of explicit customer consent for each transaction using a PPI?
Every successive payment transaction using a PPI has to be authenticated by explicit customer consent. Similarly, the PPIs issued in the form of cards (physical or virtual) shall necessarily have an Additional Factor of Authentication (AFA) as required for debit cards, except in case of PPIs issued under PPI-MTS.
What are salient features of a Gift Instrument?
The salient features of prepaid gift instruments are as follows:
What are salient features of PPIs for Mass Transit Systems (PPI-MTS)?
The salient features of PPIs for Mass Transit Systems (PPI-MTS) are as follows:
I was given an option to convert my PPI into the new categories allowed in the PPI-MD, however, I have not exercised the option. What will happen to my PPI and balance thereof?
Where a PPI holder has not exercised the option of converting into any of the new categories, the PPIs issued to his / her shall mandatorily be converted into a minimum detail PPI with all the applicable features as on March 01, 2018. While the PPI holder shall be allowed to use the existing balance for purchase of goods and services, no further credit / loading shall be allowed till the minimum details are obtained.
What is the minimum validity period of a PPI?
All PPIs shall have a minimum validity period of one year from the date of last loading / reloading in the PPI. PPI issuers are, however, free to issue PPIs with a longer validity. Issuers shall clearly indicate the expiry period of the PPI to the customer at the time of issuance of PPIs.
What will happen to a PPI that is not used for a certain period?
A PPI with no financial transaction for a consecutive period of one year shall be made / treated as inactive after sending a notice to the PPI holder. It can be reactivated only after validation and applicable due diligence.
What will happen to the outstanding balance in such PPIs where the scheme is being wound-up or are directed by RBI to be discontinued?
The holders of such PPIs shall be permitted to redeem the outstanding balance in the PPI, if for any reason the scheme is being wound-up or is directed by RBI to be discontinued.
How the refunds in case of failed / returned / rejected / cancelled transactions shall be dealt with?
Refunds in case of failed / returned / rejected / cancelled transactions shall be applied to the respective PPI immediately, to the extent that payment was made initially by debit to the PPI, even if such application of funds results in exceeding the limits prescribed for that type / category of PPI.
Can refunds in case of failed / returned / rejected / cancelled transactions using any other payment instrument be credited to a PPI?
Refunds in case of failed / returned / rejected / cancelled transactions using any other payment instrument should not be credited to a PPI and should be credited back to the same payment instrument.
What are the disclosures to be made by the PPI issuer at the time of issuance?
PPI issuers shall disclose all important terms and conditions in clear and simple language to the holders while issuing the instruments. These disclosures shall include:
What is the grievance redressal set-up prescribed for a PPI Issuer?
PPI issuers shall put in place a formal, publicly disclosed customer grievance redressal framework, including designating a nodal officer to handle the customer complaints / grievances, the escalation matrix and turn-around-time for complaint resolution. The framework shall include, at the minimum, the following:
What is the protection available in case of unauthorized / fraudulent transactions involving PPIs?
Non-bank PPI issuers shall clearly outline the amount and process of determining customer liability in case of unauthorised / fraudulent transactions involving PPIs. Bank PPI issuers shall be guided by the Department of Banking Regulation, circular DBR.No.Leg.BC.78/09.07.005/2017-18 dated July 6, 2017 on Customer Protection – Limiting Liability of Customers in Unauthorised Electronic Banking Transactions.
Is there any instruction on providing account statement or transaction history of PPI transactions?
PPI issuers shall provide an option for the PPI holders 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, the PPI issuers shall provide transaction history for at least 10 transactions.
Is the Banking Ombudsman Scheme applicable for PPI transactions?
In case of PPIs issued by banks, customers have recourse to the Banking Ombudsman (BO) Scheme. RBI is in process of extending the scope of BO Scheme to non-bank PPIs also.
Can a PPI issuer issue multiple PPIs to same customer?
Ans. A PPI issuer can issue any one of the following two types to a customer:
a) Minimum detail semi-closed PPI;
b) KYC compliant semi-closed / open system PPI;
Within the types mentioned above, in case a PPI issuer is issuing multiple PPIs to same customer due to reasons like multiple co-branding partners; various forms like wallet and card; etc. how will the limits be treated?
Within the types mentioned above, in case a PPI issuer is issuing multiple PPIs to same customer due to various reasons (e.g. multiple co-branding partners, issuance of PPI in different form factors like wallets / cards), then the PPI issuer shall monitor the limits through centralised database / management information system (MIS).
For example, the limit of ₹1,00,000/- at any point of time shall be calculated after combining the value in all KYC compliant PPIs issued to a customer by a particular PPI issuer under various arrangements / form factor.
Similarly, the limit of ₹10,000 in paragraph 9.1(i) of PPI MD is across all minimum detail PPIs (issued by the PPI issuer under various arrangements / form factor).
However, the limits does not include the two categories [Gift instruments and PPIs for Mass Transit Systems (PPI-MTS)] mentioned in paragraph 10 of the PPI-MD.
What is meant by interoperability of PPIs? Are PPIs Interoperable?
Interoperability is the technical compatibility that enables a payment system to be used in conjunction with other payment systems. Interoperability allows PPI issuers, system providers and system participants in different systems to undertake, clear and settle payment transactions across systems without participating in multiple systems. Interoperability has been allowed in PPIs through circular DPSS.CO.PD. No. 808 / 02.14.006 / 2018-19 dated October 16, 2018. Desirous PPI issuers can provide this facility to the customers.
For example, the limit of ₹1,00,000/- at any point of time shall be calculated after combining the value in all KYC compliant PPIs issued to a customer by a particular PPI issuer under various arrangements / form factor.
Similarly, the limit of ₹10,000 in paragraph 9.1(i) of PPI MD is across all minimum detail PPIs (issued by the PPI issuer under various arrangements / form factor).
However, the limits does not include the two categories [Gift instruments and PPIs for Mass Transit Systems (PPI-MTS)] mentioned in paragraph 10 of the PPI-MD.
Who can provide the facility of PPI interoperability?
Any authorised bank or non-bank PPI issuer can provide the facility of PPI interoperability.
Is it mandatory for a PPI issuer to allow interoperability?
No, it is not mandatory for a PPI issuer to allow interoperability. However, if opted for by an issuer, it shall be facilitated to all KYC compliant PPI accounts and entire acceptance infrastructure.
I am having a minimum detail PPI but my issuer is not allowing interoperability. Why?
Interoperability is allowed only for KYC compliant PPIs.
What are the modes of interoperability?
If the PPI is issued in the form of wallet, interoperability across PPIs shall be enabled through UPI. If the PPI is issued in the form of card, the card shall be affiliated to the authorised card network for interoperability.
RTGS System
(Updated as on December 10, 2018)
What does RTGS stand for?
The acronym 'RTGS' stands for Real Time Gross Settlement, which can be explained as a system where there is continuous and real-time settlement of fund-transfers, individually on a transaction by transaction basis (without netting). 'Real Time' means the processing of instructions at the time they are received; 'Gross Settlement' means that the settlement of funds transfer instructions occurs individually.
Are the payments under RTGS final and irrevocable?
Considering that the funds settlement takes place in the books of the Reserve Bank of India, the payments are final and irrevocable.
What are the benefits of using RTGS?
RTGS offers many advantages over the other modes of funds transfer:
How is the processing of RTGS different from that of National Electronic Funds Transfer (NEFT) System?
NEFT is an electronic fund transfer system in which the transactions received up to a particular time are processed in batches. Contrary to this, in RTGS, the transactions are processed continuously on a transaction by transaction basis throughout the RTGS business hours.
Is RTGS a 24x7 system or are there some timings applicable?
NEFT is an electronic fund transfer system in which the transactions received up to a particular time are processed in batches. Contrary to this, in RTGS, the transactions are processed continuously on a transaction by transaction basis throughout the RTGS business hours.
