Payment wallets must improve customer grievance redress mechanisms: Expert

Cumbersome KYC requirements, issues of safety and security of personal information, and no incentive to maintain balance are some key concerns flagged by experts

On March 1, the Reserve Bank of India’s (RBI) circular limiting liability of customers in unauthorised payment wallet transactions came into effect. With a focus on “customer protection”, this is a step by the regulator to create an improved consumer protection system in the increasingly prevalent mobile wallets market in the country. 

India has been dubbed as the world’s fastest growing mobile payment market. With that, the concerns of the sector and the impact on customers, including possible fraudulent transactions and safeguarding personal information, have come to the forefront. 

In order to ease the consumer grievance redress system, the RBI has created