No liability if e-wallet users report fraud within three days, says RBI

A payments expert said this was already a process; only the window of reporting the fraud had been increased

The Reserve Bank of India (RBI) has absolved customers using prepaid instruments of liabilities arising out of a fraud if the incident is reported within three days. This is same as the rules for bank frauds.

Prepaid payment instruments (PPI) comprise mobile wallets, prepaid payments cards, and paper vouchers.

If it is a third-party breach, where the transgression is neither on the part of the PPI issuer nor the customer but elsewhere in the system, the customer will have no liability if they report it within three days. For banks, the rules are already in place, but the latest notification