Customer Compensation Policy
Introduction
Airtel Payments Bank offers high levels of service to its customers. In the event, for some reasons beyond the control of the bank or inadvertently, the bank is unable to meet the service levels committed in the dealings with individual customer, this compensation policy will be applicable. The Compensation policy is therefore, designed to cover areas relating to unauthorized debiting of account, remittances within India, foreign exchange services, etc. The policy is based on principles of transparency and fairness in the treatment of customers.
Objective
The objective of this policy is to establish a system whereby the bank compensates the customer for any financial loss he/she might incur due to deficiency in service on the part of the bank or any act of omission or commission directly attributable to the bank. By ensuring that the customer is compensated without having to ask for it, the bank expects instances when the customer has to approach Banking Ombudsman or any other Forum for redressal to come down significantly.
Applicability
This Policy is applicable to all the customers of the Airtel Payments Bank.
It is further reiterated that the policy covers only compensation for financial losses in real terms for specific value which customers might incur due to deficiency in the services offered by the bank which can be measured directly and as such 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.
The policy does not cover and is not applicable in respect of claims made by customers on account of opportunity losses or damages or claims pertaining to reputation loss.
Recognition of deficiency:
- Un-authorized / Erroneous Debit: If the bank has raised an unauthorized/erroneous direct debit to an account and upon being informed of the erroneous debit, the entry will be reversed, after due verification. In such cases, the Bank will compensate the customer, by way of loss of savings account interest due on savings bank deposit or any charges levied for balance falling below minimum balance requirement. In case verification of the entry reported to be erroneous by the customer does not involve a third party, the bank shall arrange to complete the process of verification within a maximum period of seven working days from the date of reporting of erroneous debit. In case, the verification involves a third party, the bank shall complete the verification process within a maximum period of one month from the date of reporting of erroneous transaction by the Customer.
- ECS direct debits/other debits to accounts: With the implementation of direct debit functionality, the bank shall undertake to carry out direct debit of customers in time subject to (a) Customer having already provided valid and complete mandate duly authenticated by the bank to accept such debits (b) Direct debit received is complete and correct. The Bank undertakes to carry out, within the prescribed time, direct debit instructions of customers. In the event of non-compliance/delayed compliance of instructions by the Bank to meet such commitments, the customer will be compensated to the extent of any financial loss the customer would incur on account of delay in carrying out the instruction/failure to carry out the instruction. Such compensation may be equivalent to the interest calculated on the amount to be debited, for the delayed period, at applicable Savings Bank rate.
- Levy of excess service charges : The bank would debit the customer’s account with any applicable service charge as per the schedule of charges notified by the bank. In the event the bank levies any charge in violation of the arrangement, the bank will reverse the charges with value when pointed out by the customer subject to scrutiny of agreed terms and conditions and such other terms and conditions as may be communicated from time to time.
- Penal interest payable for delays in credit / return of NEFT/IMPS / ECS transactions: In terms of the RBI guidelines on payment of interest for instances of delay in affording credits/return of RTGS/NEFT/NECS/ECS transactions, Airtel Payments bank undertakes to afford the credits to destination account holders or return the instruction to the remitting bank within the prescribed time line. In cases where it is not possible to afford the credits to the beneficiary account within the prescribed time line without any valid reasons, customer will be compensated for the delayed period of credit at the rate of RBI LAF repo rate + 2%.
- Debit Cards-disputed transactions : The Debit Card holder shall be responsible for all transactions approved on his/her debit card prior to report of the loss to the Bank as per bank’s Debit card terms and conditions, as amended from time to time and prevalent at the time of such event. 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 MasterCard International. The Bank will provide explanation and if necessary, documentary evidence to the customer in line with chargeback rules of Mastercard.
- Erroneous Debits Arising on account of Fraudulent or Other Transactions:
- a) In case of a claim raised by any of the customers, the bank shall investigate the matter in its entirety and if the bank is convinced that an irregularity /fraud has been committed by its staff towards any constituent, the bank will acknowledge its liability and pay the just claim.
- b) In cases where the bank is at fault, the bank will compensate the customer without demur.
- c) In cases where neither the bank nor the customer is at fault, but the fault lies elsewhere in the system, the matter would be required to be referred/escalated to the appropriate Grievance Redressal Mechanism/authorities.
- Unsuccessful or Failed Transactions Large number of customer complaints emanate on account of unsuccessful or ‘failed’ transactions. Failure could be on account of various factors not directly attributable to the customer such as disruption of communication links, non-availability of cash in ATMs, time-out of sessions, non-credit to beneficiary’s account due to various causes, etc. Rectification / Compensation paid to the customer for these ‘failed’ transactions is not uniform. Wherever financial compensation is involved, the same shall be effected to the customer’s account suo moto, without waiting for a complaint or claim from the customer.
- Violation of the Code by banks agent: In the event of receipt of any complaint from the customer that the bank’s representative has engaged in any improper conduct or acted in violation of the Code of Bank’s Commitment to Customers which the bank has adopted voluntarily, bank shall take appropriate steps to investigate and to handle the complaint and to revert to the customer within seven days from the date of receipt of complaint and wherever justified, shall compensate the customer for financial losses, if any.
- Compensation Policy for any delay in Atal Pension Yojana (APY) services on part of PoP-APY: In case of a claim raised by the customer, the bank shall investigate the matter in its entirety and if the bank is convinced that there is delay in services, the bank will acknowledge its liability and pay the claim as prescribed below.
- Incidents along with TAT and Compensation to be paid are given in Table 1 and Compensation Policy for any delay in Atal Pension Yojana (APY) are given in Table 2
Description of the incident
Timeline for auto-reversal
Compensation payable
Automated Teller Machines (ATMs) including Micro- ATMs: Customer’s account debited but cash not dispensed.
Auto-reversal within a maximum of T + 5 days.
₹ 100/- per day of delay beyond T + 5 days.
Point of Sale (PoS) (Card Present) including Cash at PoS: Account debited but confirmation not received at merchant location i.e., charge-slip not generated.
Auto-reversal within T + 5 days.
₹ 100/- per day of delay beyond T + 5 days.
Card Not Present (CNP) (e-commerce) Account debited but confirmation not received at merchant’s system.
Auto-reversal within T + 5 days.
₹ 100/- per day of delay beyond T + 5 days.
Account debited but the beneficiary account is not credited. (IMPS)
If unable to credit to beneficiary account, auto reversal (R) by the Beneficiary bank latest on T + 1 day.
₹100/- per day if delay is beyond T + 1 day.
UPI: Account debited but the beneficiary account is not credited (transfer of funds).
If unable to credit the beneficiary account, auto reversal (R) by the Beneficiary bank latest on T + 1 day.
₹100/- per day if delay is beyond T + 1 day.
UPI: Account debited but transaction confirmation not received at merchant location (payment to merchant).
Auto-reversal within T + 5 days.
₹100/- per day if delay is beyond T + 5 days.
Aadhaar Enabled Payment System (including Aadhaar Pay) a) Account debited but transaction confirmation not received at merchant location. b) Account debited but beneficiary account not credited.
Acquirer to initiate “Credit Adjustment” within T + 5 days.
₹100/- per day if delay is beyond T + 5 days.
Aadhaar Payment Bridge System (APBS) Delay in crediting beneficiary’s account.
Beneficiary bank to reverse the transaction within T + 1 day.
₹100/- per day if delay is beyond T + 1 day.
Prepaid Payment Instruments (PPIs) – Cards / Wallets Off-Us transaction The transaction will ride on UPI, card network, IMPS, etc., as the case may be. The TAT and compensation rule of respective system shall apply.
On-Us transaction Beneficiary’s PPI not credited. PPI debited but transaction confirmation not received at merchant location.
Reversal effected in Remitter’s account within T + 1 day.
₹100/- per day if delay is beyond T + 1 day.
Description of the incident for delay in APY
TAT
Compensation payable in case of delay (for APY)
Delay in subscriber service requests (Change in customer details)
T+5, where T is the date of receipt of service request, if all the necessary documents are shared.
For each delayed transaction, Rs. 5/- per day subject to maximum Rs. 100. (This amount should will be credited to the subscriber’s PRAN)
Processing of voluntary exit requests
T+7, where T is the receipt of such forms along with supporting documents, if any as prescribed therein.
1. For each delayed transaction, @ 8% p.a. of the exit proceeds amount, for the period of delay. (This amount should be credited to the subscriber’s savings bank account). 2. In case the loss to subscriber is more than the compensation applicable, then we shall make good the loss and credit the same to the subscriber’s savings bank account.
Processing of exit requests due to death
T+12, where T is the receipt of such forms along with all supporting documents as mentioned in APY Death Claim SOP .
1. For each delayed transaction, @ 8% p.a. of the exit proceeds amount, for the period of delay. (This amount should be credited to the subscriber’s savings bank account) 2. In case the loss to subscriber is more than the compensation applicable, then we shall make good the loss and credit the same to the subscriber’s savings bank account.
Delay in processing of Subscriber registration form
T+2, Where T is the receipt of Subscriber Registration Form including correction of discrepancies.
@ 8% p.a. of the initial contribution for the period of delay (This amount should be credited to the subscriber’s PRAN)
Delay in collection and processing of initial contributions
T+1, Where T is the activation date of PRAN by CRA
@8% p.a. of the contribution amount. (This amount should be credited to the subscriber’s PRAN)
Delay in collection and processing of subsequent contributions
A debit cycle to be run once for all APY subscribers within first ten calendar days of the month / quarter / half year, as the case may be. Post completion of first debit cycle, we shall continue to raise demand on all working days till the collection of contribution from the savings bank account of all such subscribers.
The overdue interest (ODI) as per ODI rates determined by the GOI/Authority from time to time, in case the subsequent contributions file is uploaded post the stipulated time in CRA system.
Delay in upload and remittance of initial and subsequent contributions fund
T+2, where T is the date of deduction of subscriber’s contribution from savings bank account.
@ 8% p.a. of the contribution amount.(This amount should be credited to the subscriber’s PRAN)
Customer’s Responsibility
Bank will not be responsible for the loss to the customers due to customer's carelessness in maintaining the card information, MPIN or other security information and not following "Do's and Don'ts" issued by the Bank, until the Bank has been notified by the customer.
Customer acts fraudulently and/or acts without reasonable care which has resulted in loss to him/her. Bank will also not be responsible for the 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
Disclaimer Clause
Notwithstanding anything contained here above, the Bank shall not pay any compensation in the following cases:-
- a) 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.
- b) Where the issues are sub-judice and pending before Courts, Ombudsman, arbitrator , Government and matter put on hold due to stay.
Force Majeure
The bank shall 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
Timelines for payment of Compensation amount
In case the Bank is liable to pay any compensation in accordance with the Policy, the same would be paid to the complainant within 15 working days from the completion of the investigation.
Amendment / Modification of the Policy
The Bank reserves the right to amend/modify this policy, as and when deemed fir and proper at its sole discretion. However, the Bank shall endeavor to review the Policy at annual intervals.
General
Acceptance of the compensation by the customers under this policy shall be deemed to be final settlement of all issues arising out of grievances for which compensation is claimed.
Policy Review & Updates
The policy will be reviewed annually in January or as and when any regulatory or internal changes done affecting the scope of Policy.
Regulatory References
This Policy should be read in conjunction with other Bank policies and procedures. This Policy should also be read in conjunction with the regulatory guidelines and shall be updated in line with the changes made in the regulatory guidelines as and when required
Name of the circular/statute
Circular reference / Statute section
Circular issuance date (last updated on)
Circular issuing authority
Master Circular on Customer Service
RBI/2014-15/72 DBOD No.Leg.BC.21/09.07.006/2014-15
July 1, 2014
RBI
Harmonisation of Turn Around Time (TAT) and customer compensation for failed transactions using authorised Payment Systems
RBI/2019-20/67 DPSS.CO.PD No.629/02.01.014/2019-20
September 20, 2019
RBI