The use of Mobile digital banking applications in India is growing substantially every day, India currently has 182.6 Million people using some kind of Mobile payments application, according to Internet and Mobile Association of India (IAMAI). Thus it is very important for the users to know what are the terms and services of such applications, the liability of authority, obligations of users, indemnity, and everything else anyone should know.
To begin with, by accepting the terms and conditions of service, the consumer using the affiliated applications agrees to the condition that the platform doesn’t warrant an uninterrupted and error-free service. In a competitive market like India, while it is in the best interest of the company to provide efficient services, they have tried to indemnify themselves of any liability by putting these clauses in the terms of service.
Paytm, BHIM and Jio Money, in their terms, say that they do not warrant that their app or website will be free from viruses or defects. Paytm Payments Bank, which operates the wallet, says that “No warranty is given that products/services or any data/content are free from any computer virus or other malicious, destructive or corrupting code, agent, program or macros,” .
TEZ:
Explaining the functionality of Tez, a Google India official said that the app was only an intermediary in a given transaction and that the transaction was conducted at the bank’s end. Google itself has tied up with four banks to offer UPI services on Tez. “Banks have their own grievance mechanisms in place in case a transaction fails, which is why the liability that Tez would bear is limited,” the official said.
PAYTM:
One97 Communications Ltd, which is a key shareholder in Paytm Payments Bank, says in its terms: “One97 uses 128-bit encryption by Verisign for security and follows PCI DSS (payment card industry data security standard) mandated by the card association networks and administered by the Payment Card Industry Security Standards Council. However, One97 cannot, and does not, guarantee that the information in transit may not be altered or intercepted or accessed by others and decrypted.” Paytm is the flagship brand of One97, in which Chinese company Alibaba has a significant investment.
BHIM:
Similarly, BHIM app, which is run by the National Payments Corporation of India, says: “No warranty is provided that the app will be free from defects or virus or that operation of the app will be uninterrupted. Use of the app by the user is at the user’s own discretion and risk and the user is solely responsible for any damage resulting from the use of the app”. Reliance Payment Solutions Ltd (RPSL) says: “RPSL also does not warrant that any links that may be accessible or any files available for downloading through the Website or mobile app will be free of viruses, worms or other code that may be damaging”. Prepaid wallet firm MobiKwik, on the other hand, says in its terms and conditions: “Your sole and exclusive remedy for any dispute with us is the suspension of your MobiKwik account. In no event shall our total cumulative liability to you for any and all claims relating to or arising out of your use of the Website, regardless of the form of action, exceed INR 1000 /- (Indian Rupees [ONE THOUSAND] only)”.
AIRTEL PAYMENTS BANK:
Airtel Money’s terms and conditions say: “The Customer agree to indemnify, defend and hold the Bank and/or related parties harmless from any and all claims, losses, damages, and liabilities, costs and expenses, including and without limitation legal fees and expenses, arising out of or related to the use or misuse of the Airtel Money Services, any violation of these Terms and Conditions, or any breach of the representations, warranties, and covenants”.
Digital payment is one of the empowering system in India promoting digital India started by the honorable Prime Minister of India, Mr. Narendra Modi, which leads to transparency of cash in the country and directly control the black money in India by tax payment and transparent cash flow of every individual. Digital payment helps India in every sector by providing security and safety in relation to cash and also by advancing the lifestyle by adoption of latest technologies for globalization and modernization of our country which leads to the development. Thus, the importance of being aware of the terms and services of such application is more than necessary for security of money as well as privacy in the era of digitization.
REFERENCES:
- http://www.icommercecentral.com/open-access/the-electronic-banking-revolution-in-india.php?aid=59261
- https://data.worldbank.org/indicator/SP.RUR.TOTL.ZS
- Pranav Mukul, Terms & Conditions on digital payment platforms: Apps limit their liability for any users’ loss, Indian Express, 13th May 2018.
- Arpita Pandey, Mr. Arjun Singh Rathore, IMPACT AND IMPORTANCE OF DIGITAL PAYMENT IN INDIA, Conference on Recent Innovations in Emerging Technology & Science, April 6-7, 2018.
