customer compensation policy

1. Policy Statement

NSDL Payments Bank offers its customers a seamless and hassle free banking experience through its self-service and assisted digital channels. Customer education on rights, responsibilities and liabilities in case of unauthorized/erroneous/delayed transactions or customer services is an integral part of Customer service framework of the Bank. This policy details the same in line with various RBI regulations and the Bank’s customer service and grievance redressal strategy

1.1. Regulatory Requirements

  • 1.1.1 Master Circular on customer service of Banks (July, 2015)
    • Banks must have a well-documented Customer Compensation Policy duly approved by their Board
    • Banks policy should, at a minimum, incorporate the following aspects: (a) Erroneous Debits arising on fraudulent or other transactions; (b) Payment of interest for delays in collection; (c) Payment of interest for delay in issue of duplicate draft; (d) Other unauthorised actions of the bank leading to a financial loss to customer
  • 1.1.2 Customer Protection – Limiting Liability of Customers in Unauthorised Electronic Banking Transactions (July, 2017)
    • Banks shall formulate/ revise their customer relations policy, with approval of their Boards, to cover aspects of customer protection, including the mechanism of creating customer awareness on the risks and responsibilities involved in electronic banking transactions and customer liability in such cases of unauthorized electronic banking transaction
    • The Bank shall follow the minimum instructions detailed in the guidelines on sharing of liability between customer and Bank basis the source of the unauthorized transactions and the lag in customer reporting.

2. Purpose and objectives

2.1. Scope

This policy extends to all forms of customer complaints which involve monetary loss to the customer and/or the Bank. It shall cover complaints received on both self-service and assisted channels and impacting all departments, branches, DP/BCNM partners and other third party vendors of the Bank

2.2. Objective

The objective of the policy is to provide a framework for verifying and determining division of rights, responsibilities and liabilities between Bank and Customer.

3. Policy Rules

3.1. Guidelines

  • The Bank shall be transparent, fair and efficient in providing compensation to its customers. However, the commitments under this policy shall be without prejudice to any right the Bank will have in defending its position before any forum duly constituted to adjudicate banker-customer disputes.
  • The systems and procedures in banks shall be designed to make customers feel safe about carrying out electronic banking transactions. To achieve this the Bank shall endeavor to put in place appropriate systems and procedures to ensure safety and security of digital transactions, fraud risk management framework and a mechanism for customer education
  • Customer education shall involve advising the customers on how to protect themselves from electronic banking and payments related fraud
  • Customers shall require to mandatorily register for SMS alerts and wherever available register for e-mail alerts, for electronic banking transactions. The SMS alerts shall mandatorily be sent to the customers
  • Customer shall be required to notify their bank of any unauthorized electronic banking transaction at the earliest after the occurrence of such transaction, and informed that the longer the time taken to notify the bank, the higher will be the risk of loss to the bank/ customer.
  • The following customer care contact details shall be utilized by the customer for lodging the complaint:
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      Call Centre: Call Centre/IVR would be available in Hindi and English. Customers can call +91-22-42022100

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      Email : cspb@nsdl.co.in

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      Website : www.nsdlbank.co.in

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      Post : Grievance Redressal Officer, NSDL Payments Bank Limited, 4th Floor, ‘A’ Wing, Trade World, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai – 400 013.

  • Customer Compensation shall be determined basis the following scenarios:
Scenario Customer Required Action Bank Required Action Compensation

Erroneous/Unauthorised direct debit in customer Bank account due to fraudulent or other electronic banking transaction in cases involving:

Fraud/negligence on the part of the Bank i.e. either committed by the Bank staff or by the Bank Vendor (irrespective of whether the loss/fraudulent transaction is reported by the customer or not)

As per RBI Customer protection guidelines, not mandatory for customer to report. Customer liability is Zero in this case

In case of suspected fraud Bank may assess to block transactions temporarily

Entry to be reversed immediately after due verification

Full refund of the erroneous/ unauthorised debit amount

In case the erroneous/unauthorized transaction has resulted in a lowering of minimum balance, no penalties shall be imposed on the customer

Erroneous/Unauthorised direct debit in Customer bank account due to fraudulent or other electronic banking transaction in cases involving:

Negligence by a customer (such as where he has shared the mpin, otp, etc.)

Approach the bank as soon as the customer becomes aware of the unauthorised debit

In case of suspected fraud Bank may assess to block transactions temporarily

Entry to be reversed on a best effort / recovery basis immediately after due verification for the unauthorised transaction value.

Entry to be fully reversed for any additional unauthorised transaction which happens post the reporting to the Bank

Customer to bear the entire loss until he/she reports the unauthorised transaction to the bank.

Any loss occurring after the reporting of the unauthorised transaction shall be borne by the bank

Post customer reporting, any penalties resulting from a lowering of minimum balance to be waived

Erroneous/Unauthorised direct debit in Customer account with Bank on fraudulent or other electronic banking transaction in cases involving:

Third party breach where the fault lies neither with the bank nor with the customer but lies elsewhere in the system. Customer reports within 3 working days of the incident

Customer to report within 3 working days. Customer liability is Zero as per RBI Customer protection guidelines

In case of suspected fraud Bank may assess to block transactions temporarily

Bank to reverse entry immediately after due verification

Full refund of the erroneous/ unauthorised debit amount

In case the erroneous/unauthorized transaction has resulted in a lowering of minimum balance, no penalties shall be imposed on the customer

Erroneous/Unauthorised direct debit in Customer account with Bank on fraudulent or other electronic banking transaction in cases involving:

Third party breach where the fault lies neither with the bank nor with the customer but lies elsewhere in the system. Customer reports 4-7 working days of the incident

If Customer reports within 4-7 days, Customer has limited liability

In case of suspected fraud Bank may assess to block transactions temporarily

Bank to reverse entry for the residual transaction value above Rs.5000 (for BSBDA accounts) and Rs 10000 (for other accounts) after due verification

Customer liability is transaction value or Rs 5000 (for BSBDA accounts) or Rs 10,000 (for other SB accounts, PPIs and credit cards with limit upto Rs 5,00,000) whichever is lower

Reversal of transactions for the residual transaction value above Rs.5000 (for BSBDA accounts) and Rs 10000 (for other accounts) after due verification

In case the erroneous/unauthorized transaction has resulted in a lowering of minimum balance post adjustment of customer liability amounts, no penalties shall be imposed on the customer.

Erroneous/Unauthorised direct debit in Customer account with Bank on fraudulent or other electronic banking transaction in cases involving:

Third party breach where the fault lies neither with the bank nor with the customer but lies elsewhere in the system. Customer reports beyond 7 working days of the incident

If Customer reports beyond 7 days, Customer has full transaction liability

In case of suspected fraud Bank may assess to block transactions temporarily

No entry reversal to be done

No compensation in form of penalty waiver

Delay in credit / return of NEFT / IMPS transactions

Approach the bank within a maximum period of 45 days, post the due date of credit

Bank shall investigate and post verification shall either accept or decline the request for compensation

Immediate credit if transaction is still pending

Payment of interest at the Call Money Rate as published by the RBI on a daily basis for any period of delay in the case of delayed payment

Other types of erroneous transactions due to customer error

To notify bank within 45 days

Entry to be reversed on a best effort / recovery basis immediately after due verification

No compensation

Other types of erroneous transactions due to bank systems failure

To notify bank within 45 days

Investigate on causes for transaction failure

Determine if Bank system failure is due to control failure/bugs, etc

Basis Bank assessment of source of failure, extent of compensation/penalty waiver if applicable shall be determined by SCCS

Mis-Selling of Products

Within 15 working days of incident

Investigate the case as per Bank Policy and determine the cause of the problem

Take action against errant BCNM in case responsibility is confirmed

Basis Bank assessment of source of failure, extent of compensation/penalty waiver if applicable shall be determined by SCSC

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