Prepaid payment Instruments can be used to buy goods and services as well as transfer and send money to a friend, family, etc. The loading /reloading of such PPI is only from a bank account and to be used for making only digital payments such as bill payments, merchant payments, etc.  Such PPIs can be issued on the basis of essential minimum details sourced from the customer. All PPI’s are issued on the prescribed KYC norms. Consumers using pre-paid payment instruments (PPIs) issued by banks were protected by limiting their liability towards unauthorized electronic transactions. With effect from 1^stMarch 2019, this facility was extended to customers using non-bank issued PPIs as well.

Consumer using pre-paid payment instruments (PPIs) issued by banks were protected by limiting their liability towards unauthorized electronic transactions. With effect from March 01, 2019, this facility was extended to customers using non-bank issued PPIs as well. The purpose of prescribing a framework for “Limiting Liability of Customers for Unauthorised Electronic Payment Transactions in Prepaid Payment Instruments (PPIs) issued by Authorized Non-banks” was to limit the liability of customers against unauthorized electronic payment transactions in PPIs issued by non-bank issuers. Further, an enhanced consumer grievance redressal framework was also implemented, prescribing the limits up to which a customer may bear liability under various scenarios like contributory frauds, negligence or deficiency on part of non-bank PPI issuer, third party breach, where the deficiency lies neither with the issuer nor with the customer, and scenarios in which the loss is due to negligence of the customer.

To use this wallet, first you have to open your account in that wallet of your choice and for this it is mandatory to have a mobile number. After registering to this service, money can be transferred to the wallet with the help of a debit or credit card and then at the time of purchase you can use money wallet with the help of a smartphone or mobile. 

The payment gateway works as the middleman between the customer and the merchant, ensuring the transaction is carried out securely and promptly. An online payment gateway can simplify how merchants integrate the necessary software. As the middleman during the payment processing, the gateway manages the customer’s sensitive card details between the acquirer and the merchant.

·   A customer initiates the payment transaction by clicking on ‘buy now’ or its equivalent button on the website.

·  E-commerce platform takes the customer to a payment gateway where the customer has to input the relevant details.

·   Payment gateway redirects the customer to a secure (consumer to check) page for authorizing the transaction.

· Once the transaction is approved by the payment gateway, banks check the  customer’s account to decide whether the transaction is a success

·  Payment gateway sends the message (successful transaction or error in the transaction) to the customer.

·   If the transaction is successful, the bank settles the payment with the payment gateway.

·   The payment gateway then settles the payment with the merchant, notifying the customer that the transaction is successful and the payment process is complete.

AePS is a bank led model which allows online interoperable final inclusion transaction at PoS (Micro ATM) through the business correspondent of any bank using Aadhaar authentication. In the past few months, several use cases like Loan EMI collection, premium collections, payment on delivery etc. have been developed and operationalized on AePS based - BHIM Aadhaar service with an aim to enable wider financial inclusion.  The four Aadhaar-enabled basic types of banking transactions are Balance Enquiry, Cash Withdrawal, Cash Deposit, Aadhaar to Aadhaar Funds Transfer.

To strengthen the grievance redressal mechanism at the entity level itself, large non-bank PPI issuers were mandated to institutionalize an internal ombudsman scheme in October 2019.  The RBI’s objective is to create a swift and cost-effective mechanism for grievance redressal and create an additional tier for resolving complaints. The Reserve Bank issued detailed instructions in this regard on 17th December 2019. The new internal ombudsman is expected to help providers and consumer resolve grievances internally. It is mandatory for the consumer first to take their grievance to the service provider, and only then the complainant can approach the Ombudsman.

The Reserve Bank of India has introduced an Ombudsman Scheme for Digital Transactions.  It is an expeditious and cost-free mechanism for resolution of complaints regarding digital transactions undertaken by customers of the System Participants as defined in the Scheme. The purpose of the scheme is to improve the level of customer service and serves as a complaint redressal mechanism relating to deficiency in customer service in digital transactions conducted through non-bank entities that are regulated by the Reserve Bank.  

The grievances include failure in crediting merchant's account within reasonable time, failure to load funds within reasonable time in wallets /cards, unauthorized electronic fund transfer among others. 

The Digital Complaint Management System is the unified portal for Banking, NBFC as well as Digital Transactions related complaints -  https://cms.rbi.org.in/cms/IndexPage.aspx.  In this unified portal, the complainant can lodge complaint; get the Complaint Registration Number, using the same can track their complaints.