Customer Protection Policy

Liability of Customers in Unauthorized Electronic Payment Transactions


Digi Khata is committed to provide safe and secure customer service experience to all its customers. Acknowledging the importance of financial inclusion & customer protection, the Reserve Bank of India had issued a circular on Customer Protection – Limiting Liability of Customers in Unauthorized Electronic Payment Transactions. (RBI/2018-19/101 DPSS.CO.PD.No.1417/02.14.006/2018-19 dated January 04, 2019) which requires all PPIs to formulate a Board approved policy in regard to customer protection and compensation in case of unauthorized electronic banking transactions.


This policy seeks to communicate in a fair and transparent manner, the stand of Digi Khata on:

  • Customer protection (including mechanism of creating customer awareness on the risks and responsibilities involved in electronic banking transactions)
  • Customer liability in cases of unauthorized electronic banking transactions
  • Customer compensation due to unauthorized electronic banking transactions (within defined timelines)

Customer Liability and Risks

The risks and liabilities involved as per the matrix given in the Customer Protection Policy (appended below):

Customer Liability in case of Unauthorized Electronic Payment Transactions through Digi Khata Wallet

S. No Particulars Maximum Liability of Customer
(a) Contributory fraud / negligence / deficiency on the part of the PPI issuer, including PPI-MTS issuer (irrespective of whether or not the transaction is reported by the customer) Zero
(b) Third party breach where the deficiency lies neither with the PPI issuer nor with the customer but lies elsewhere in the system, and the customer notifies the PPI issuer regarding the unauthorized payment transaction. The per transaction customer liability in such cases will depend on the number of days lapsed between the receipt of transaction communication by the customer from the PPI issuer and the reporting of unauthorized transaction by the customer to the PPI issuer -
i.  Within three days# Zero
ii.  Within four to seven days# Transaction value or Rs.10,000/- per transaction, whichever is lower
iii.  Beyond seven days# Full liability of the customer
(c) In cases where the loss is due to negligence by a customer, such as where he / she has shared the payment credentials, the customer will bear the entire loss until he / she reports the unauthorized transaction to the PPI issuer. Any loss occurring after the reporting of the unauthorized transaction shall be borne by the PPI issuer.
(d) PPI issuers may also, at their discretion, decide to waive off any customer liability in case of unauthorized electronic payment transactions even in cases of customer negligence.

Fraud Reporting – Direct 24x7 mechanism

  • Customers can raise complaint on any transaction which is unauthorized/fraudulent in nature on the Website and on Digi Khata Mobile App – 24x7.
  • Website and Mobile App: Menu->Write to Us->Select Category->Report
  • Unauthorized Transaction->Enter details-> Click Proceed
  • Any unauthorized electronic banking transaction reported after 7 working days will be treated as 100% customer liability.