Paytm begins insurance for mobile wallets
Online marketplace major Paytm has said it would provide insurance cover for the money stored in its e-wallets.
Money lost due to fraudulent transactions as a result of theft, burglary, loss of device or unauthorised access to the user’s Paytm wallet will be refunded. This cover is at no additional cost.
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The ministry of electronics and information technology (MeIT) had recommended to e-wallet and insurance entities to work in tandem in this regard. It had initiated talks in January this year.
“All customers will be insured up to a limit of 20,000 or their wallet balance, whichever is lower. In case of phone loss or theft, the customer must report to Paytm via e-mail or by calling its customer care within 12 hours," the company said.
Paytm’s QR code-based payment solution is being used at a little more than five million establishments. With no cost of the point-of-service terminal and zero transaction charges, coupled with the vast Paytm user base, the company is acquiring almost a million merchants a month.
MeIT minister Ravi Shankar Prasad recently met a number of bankers and executives of mobile wallet companies to discuss ways of making digital transactions safer.
According to senior government officials, the ministry will play the role of a facilitator for the insurance cover, as mobile wallets are regulated by the Reserve Bank of India and insurance companies by the Insurance Regulatory and Development Authority of India.
A legal agency might be brought in to examine the concerns around digital payments and advise on a law.