A few days ago, I was out with my older son. Along the way, we stumbled upon a quaint little café that seemed to be serving some delicious evening snacks. My son instantly wanted to step inside and try some of what was being cooked there. I told him I wasn’t carrying my wallet so we wouldn’t be able to eat anything.
“You have your phone, you can just Paytm,” he suggested.
All of six, he was telling me how to use the mobile wallet. Such is the reach of these e-wallets.
What are e-wallets?
They are a type of electronic card used for online transactions, which need to be linked with the individual’s bank account. Their utility is the same as a credit or a debit card.
According to GlobalData, a leading data and analytics company, India is one of the top global markets in terms of mobile wallet adoption with 55.4 per cent survey respondents indicating that they have a mobile wallet and use it.
Given that the number of users have increased, the chances of frauds have also increased.
To protect consumers from fraudulent transactions, the Reserve Bank of India has mandated that mobile wallet users will be provided with the same safety as given to regular credit or debit card users.
Here’s how you can protect your e-wallet from fraudulent transactions:
1. Transactional SMS
One of the changes from the RBI is to ensure that all the transactional SMSes that a user receives should mandatorily have a contact number and/or email ID to report unauthorised transactions immediately.
2. Customers must register for alerts
To flag a fraudulent transaction immediately, it is important that customers register their mobile numbers, e-mail ids, and other contact details with the mobile wallet services. Do ensure that you submit the correct details so that you can be intimated about the transaction.
3. 24/7 helpline
Just like one can call and report a fraudulent transaction from your credit/debit card, mobile wallet companies have now been mandated to have a 24/7 helpline in place so that customers can call to raise their complaints.
4. Recourse if you are a victim
According to these changes, in case you are the victim of a fraudulent/negligent/deficient transaction, then the mobile wallet company is liable to refund the entire amount to you within three days of the reporting the unauthorised transaction.
The company is liable to initiate a refund even in cases where the customer fails to report the unauthorised transaction and must do so within ten days of being reported.
5. Know Your Customer
If you are a mobile wallet user, ensure your KYC is completed and updated. If it is incomplete, then you will not be able to access and use the mobile wallet post-February 2019.
Remember to follow these to continue enjoying the services and convenience of mobile wallets, while also ensuring your financial security.
(Edited by Shruti Singhal)