India&#39;s Central Bureau of Investigation (CBI) has registered a first information report (FIR) against some customers of digital wallet Paytm on the company&#39;s complaint that it has allegedly been cheated to the tune of Rs 6.15 lakh by customers based here.

It is rare for the agency to take up such cases unless they have been referred by the central government or there are directions by the Supreme Court or a high court.

CBI has registered FIR against 15 customers who are residents of Kalkaji, Govindpuri and Saket besides unknown officials of One97 Communications--parent company of Paytm.

The complaint from the Manager Legal, M Sivakumar, claimed that the company makes payment for defective products received by a customer and also arranges a reverse pickup of the damaged product which is sent to the merchant.

The process is done by a team of customer care executives who have been assigned specific IDs and passwords to handle such complaints from the customers and arrange refund and pickup.

It is alleged that the company found that in 48 cases customers had received refunds even though the delivery of orders was made successfully to them.

&quot;As a matter of facts wherein delivery of orders were successful and satisfactory to the customer, refund should not happen. However, in all these 48 cases refund of order amount happened to the respective customers to the tune of Rs 6.15 lakh,&quot; the complaint, which is now part of the FIR, alleged.

It alleged that customers &quot;illegally&quot; appropriated money refunded in their bank accounts and wallets.

It claimed that the acts reflects &quot;serious&quot; fraudulent act and foul play with common intention to wrongfully gain along with such involved customers.

The alleged fraud occurred in 2015-16.

The USD five-billion digital wallet company, which got a big boost in transactions after demonetisation of Rs 500 and Rs 1000 notes announced by Prime Minister Narendra Modi on November 8, claimed that the accused first got details of internal working of the company and then executed their plans.

&quot;Accused persons first acquired knowledge as to how the system of complainants&#39; company works and conspired to book orders, take deliveries of products at common addresses known and or belonging to them and their accomplices and then made or managed false and fabricated entries in computer system of complainant company and approved/made fraudulent refunds against the same orders, delivery of which were taken by their accomplices,&quot; the company alleged.

The company alleged that most of these customers had taken deliveries of products at common or similar addresses.

Naming the customers in the FIR, the company claimed that they may be instrumental in said fraudulent acts and could be known to each other forming bigger part of the larger conspiracy.

The company has information that in those cases where refunds were made, money was further transferred from wallet to bank accounts of either accused persons or people known to each other, it alleged.

The company claimed that the refunds were made within five to six minutes of disputes being raised by the customer.

(PTI)

It alleged that customers 'illegally' appropriated money refunded in their bank accounts and wallets

India's Central Bureau of Investigation (CBI) has registered a first information report (FIR) against some customers of digital wallet Paytm on the company's complaint that it has allegedly been cheated to the tune of Rs 6.15 lakh by customers based here. It is rare for the agency to take up such cases unless they have been referred by the central government or there are directions by the Supreme Court or a high court. CBI has registered FIR against 15 customers who are residents of Kalkaji, Govindpuri and Saket besides unknown officials of One97 Communications--parent company of Paytm. The complaint from the Manager Legal, M Sivakumar, claimed that the company makes payment for defective products received by a customer and also arranges a reverse pickup of the damaged product which is sent to the merchant. The process is done by a team of customer care executives who have been assigned specific IDs and passwords to handle such complaints from the customers and arrange refund and pickup. It is alleged that the company found that in 48 cases customers had received refunds even though the delivery of orders was made successfully to them. "As a matter of facts wherein delivery of orders were successful and satisfactory to the customer, refund should not happen. However, in all these 48 cases refund of order amount happened to the respective customers to the tune of Rs 6.15 lakh," the complaint, which is now part of the FIR, alleged. It alleged that customers "illegally" appropriated money refunded in their bank accounts and wallets. It claimed that the acts reflects "serious" fraudulent act and foul play with common intention to wrongfully gain along with such involved customers. The alleged fraud occurred in 2015-16. The USD five-billion digital wallet company, which got a big boost in transactions after demonetisation of Rs 500 and Rs 1000 notes announced by Prime Minister Narendra Modi on November 8, claimed that the accused first got details of internal working of the company and then executed their plans. "Accused persons first acquired knowledge as to how the system of complainants' company works and conspired to book orders, take deliveries of products at common addresses known and or belonging to them and their accomplices and then made or managed false and fabricated entries in computer system of complainant company and approved/made fraudulent refunds against the same orders, delivery of which were taken by their accomplices," the company alleged. The company alleged that most of these customers had taken deliveries of products at common or similar addresses. Naming the customers in the FIR, the company claimed that they may be instrumental in said fraudulent acts and could be known to each other forming bigger part of the larger conspiracy. The company has information that in those cases where refunds were made, money was further transferred from wallet to bank accounts of either accused persons or people known to each other, it alleged. The company claimed that the refunds were made within five to six minutes of disputes being raised by the customer. (PTI)

Paytm alleges customers cheated it, India's investigation agency registers case

Congress vice-president Rahul Gandhi said Thursday that Indian Prime Minister Narendra Modi&#39;s demonetisation move was a &quot;foolish decision&quot;.&nbsp;

&quot;The assessment is that it is a disaster. It has devastated the poor, farmers and daily wage workers. We want to have a discussion. We want a vote, government doesn&#39;t. How can it be a bold decision? It is a foolish decision taken without any due consideration,&quot; ANI reported him as saying.&nbsp;

He also added that Prime Minister Modi has changed &quot;his narrative&quot; with regards to demonetisation. &quot;Prime Minister Modi started by saying it is against black money, now the talk of black money is vanished. Then, he went to terrorism. After the terrorists were caught with the new notes, he went to counterfeit currency and later cashless economy. So, basically he is running.&quot;&nbsp;

&quot;PM Modi is running away, if he comes to the House for a debate, we won&#39;t let him run. He (PM Modi) is laughing, having a nice time while the people of the country are suffering. The idea behind a cashless economy is that a few people must get maximum benefits from these transactions, this has damaged the nation,&quot; &nbsp;ANI reported him as saying.&nbsp;

Parliament has been unable to function because of the uproar over demonetisation.&nbsp;

When asked about it, Rahul said it is the government&#39;s responsibility to run Parliament.

He added, &quot;If I am allowed to speak in the Lok Sabha, I will show to all how Paytm means &#39;Pay to Modi&#39;.&quot;&nbsp;

The government hit back at the Congress saying it was supporting black money hoarders.&nbsp;

(WION with inputs from ANI) 
&nbsp;

'The assessment is that?it is a disaster,' he said

Congress vice-president Rahul Gandhi said Thursday that Indian Prime Minister Narendra Modi's demonetisation move was a "foolish decision". "The assessment is that it is a disaster. It has devastated the poor, farmers and daily wage workers. We want to have a discussion. We want a vote, government doesn't. How can it be a bold decision? It is a foolish decision taken without any due consideration," ANI reported him as saying. He also added that Prime Minister Modi has changed "his narrative" with regards to demonetisation. "Prime Minister Modi started by saying it is against black money, now the talk of black money is vanished. Then, he went to terrorism. After the terrorists were caught with the new notes, he went to counterfeit currency and later cashless economy. So, basically he is running." "PM Modi is running away, if he comes to the House for a debate, we won't let him run. He (PM Modi) is laughing, having a nice time while the people of the country are suffering. The idea behind a cashless economy is that a few people must get maximum benefits from these transactions, this has damaged the nation," ANI reported him as saying. Parliament has been unable to function because of the uproar over demonetisation. When asked about it, Rahul said it is the government's responsibility to run Parliament. He added, "If I am allowed to speak in the Lok Sabha, I will show to all how Paytm means 'Pay to Modi'." The government hit back at the Congress saying it was supporting black money hoarders. (WION with inputs from ANI)

India: Demonetisation a 'foolish decision', says Rahul Gandhi

&nbsp;

India&rsquo;s largest mobile payments and commerce platform Paytm has announced registering over seven million transactions worth Rs 120 crore in a day as millions of consumers and merchants across the country try mobile payments on the Paytm payment platform for the first time.

The company is currently doing more transactions than the combined average daily usage of Credit and Debit Cards in India.

Backed by a strong payment ecosystem of customers and merchants, Paytm was able to serve over 45 million users in last 10 days alone and over five million new users added since the demonetisation drive.

With offline transactions now contributing to over 65 per cent of the overall business, the company has also expanded its merchant network by 150,000 additional merchants. This will ensure consumers have more shops in their neighbourhood accepting Paytm than ever before.

&quot;From consumers being able to pay for a cup of coffee in metros, to farmers purchasing seeds using Paytm in Kurnool, we are witnessing an exponential increase in adoption of Paytm as a way to pay by both consumers and merchants alike. We are working around the clock to ensure we can enable users and merchants to complete everyday transactions seamlessly,&quot; said Vice President - Paytm, Sudhanshu Gupta.

Over 10 lakh offline merchants across India now accept Paytm as their preferred payment mode. Paytm is accepted everywhere including taxis, autos, petrol pumps, grocery shops, restaurants, coffee shops, multiplexes, parking, pharmacies, hospitals, kirana shops and many more.

Paytm can also be used to pay at thousands of apps and websites for services like recharges and bill payments, movie tickets, travel bookings, food ordering and shopping. With its assertive focus on mobile payments, the company is inching closer to its aim of making cashless transactions a way of life across India.

(ANI)

&nbsp;

Paytm is currently doing more transactions than the combined average daily usage of Credit and Debit Cards in India.

India’s largest mobile payments and commerce platform Paytm has announced registering over seven million transactions worth Rs 120 crore in a day as millions of consumers and merchants across the country try mobile payments on the Paytm payment platform for the first time. The company is currently doing more transactions than the combined average daily usage of Credit and Debit Cards in India. Backed by a strong payment ecosystem of customers and merchants, Paytm was able to serve over 45 million users in last 10 days alone and over five million new users added since the demonetisation drive. With offline transactions now contributing to over 65 per cent of the overall business, the company has also expanded its merchant network by 150,000 additional merchants. This will ensure consumers have more shops in their neighbourhood accepting Paytm than ever before. "From consumers being able to pay for a cup of coffee in metros, to farmers purchasing seeds using Paytm in Kurnool, we are witnessing an exponential increase in adoption of Paytm as a way to pay by both consumers and merchants alike. We are working around the clock to ensure we can enable users and merchants to complete everyday transactions seamlessly," said Vice President - Paytm, Sudhanshu Gupta. Over 10 lakh offline merchants across India now accept Paytm as their preferred payment mode. Paytm is accepted everywhere including taxis, autos, petrol pumps, grocery shops, restaurants, coffee shops, multiplexes, parking, pharmacies, hospitals, kirana shops and many more. Paytm can also be used to pay at thousands of apps and websites for services like recharges and bill payments, movie tickets, travel bookings, food ordering and shopping. With its assertive focus on mobile payments, the company is inching closer to its aim of making cashless transactions a way of life across India. (ANI)

Paytm registers 7 million transactions worth Rs 120 crore in a day

At present, the number of annual non-cash transactions per person in India stands at just six. According to the World Payments Report, Finland, with 451 non-cash transactions per person in 2013, is ranked first. The United States comes second with 390. China also had 50 non-cash transactions per person in 2013. Compared to India, China has pulled ahead in its attempt to switch to a non-cash economy.

The &lsquo;Pocket&rsquo; app of ICICI bank, Axis Bank&rsquo;s Axis pay, Bank of Maharashtra&rsquo;s MahaUPI, Federal Bank&rsquo;s Lotza are now available for downloading. These are the new Unified Payments Interface-enabled (UPI-enabled) apps launched on Playstore. In a few months&rsquo; time, these will be available on iOS as well. The National Payments Corporation of India (NPCI), which initiated and designed UPI, has approved 21 Indian banks to launch their UPI apps.

UPI, in a way, is a better and improved version of the present mobile/e-payment tool, IMPS (Immediate Payment Service). UPI enables an individual to transfer funds from one account to another in two simple steps. After downloading the app of any bank, UPI generates a virtual payment address (VPA) that is unique to each account. While transferring money to any other account, one just needs to know the VPA of that account. One needs to authenticate it with a password and it&rsquo;s done.

Similarly, if someone wants to buy a book online, the e-commerce site will ask for the purchaser&rsquo;s VPA to receive the amount, then authenticate the transaction with a password and complete the payment process. Thus, a person need not fill his/her card details or follow a two password and an OTP process for buying anything online. Similarly, there is no requirement of any account number, IFSC (swift) code, branch name, etc. for doing an account to account transfer.

Another important feature of UPI is that one doesn&rsquo;t need to use the app of the bank in which a person holds the account. The UPI app of any bank can be used for any account in another bank. One can also link multiple accounts in multiple banks to one UPI app.

The Interface will be in competition with the existing online tools such as Net banking, NEFT, RTGS, etc. and will increase the competition within the banks as well. This may improve the efficiency of the banks. However, with UPI, one can do a transaction to the tune of a maximum of 100,000 Indian Rupees ($1500 approximately).

Will it make the Indian economy cashless?

UPI is being perceived as a major step towards pushing India in the direction of a cashless economy. However, in order to use UPI, one needs to have a bank account. According to a report by the Bank of India, 41 per cent of the population in India does not access banking facilities, of which 40 per cent is in urban areas and 61 per cent in rural areas. New Delhi has recently launched a scheme called Jan Dhan Yojana that aims to bring banking to the masses. But while the number of accounts has increased, reports suggest that most of the new accounts are lying dormant.

Also, UPI requires one to have a smartphone, internet connection and basic digital literacy. Last year, this journalist went on a field survey in the central Indian state of Madhya Pradesh. The interaction was mainly with people of three income classes in villages just 20 kilometres from the city of Bhopal. People across the income classes carried smartphones but they had never heard about google or e-mail. The phone was just used for calling, messaging and watching videos on youtube. So, there is a large section of the Indian population which has bank accounts and smartphones but are not literate enough to use the UPI app.

But the UPI app may push several digitally and financially literate people to move more towards a world of cashless transactions. Also, in the long run, it may benefit small businesses such as corner stores, cloth shops etc. Currently, a fraction of the 10 million plus retailers in India accept card payments. As of today, only 0.6 million do. Since, both the number of transactions and the value of transaction in a small retail shop per day is low, it is expensive for them to maintain card payment gateway. However, with UPI, they can now easily do cashless transactions at a very low cost. According to a NPCI report, it is less than Rs 0.45 for each UPI transaction.

So, a cashless economy may be a distant dream as of now but a less-cash economy is certainly a distinct possibility.

How will it impact the e-wallet industry?

There are two types of e-wallets in India with their differing business models. One is like that of ItzCash that accepts physical cash at its centres, converts it into digital currency, safekeeping in a wallet and then transferring it to any part of the country. According to Naveen Surya, the managing director of ItzCash, &ldquo;Our businesses won&rsquo;t get affected due to UPI. We cater to the unbanked section of the population, mainly daily wage earners, agriculture labourers, etc. Since the prerequisite for using UPI is having a bank account, it won&rsquo;t affect us.&rdquo;

However, there are other types of e-wallets such as Paytm, freecharge, mobikwik, instamojo etc. where an individual transfers money from his bank account to the wallet to make payments for cab rides, movie tickets, etc. With UPI, people can easily bypass these e-wallets unless they have an incentive. The incentives mean discounts, rewards or cashbacks from the e-wallet companies. But that is unsustainable in the long run. Right now, NPCI has approved UPI only for banks.

According to Ruchir Kanakia, head, business development &amp; operations, Instamojo, &quot;It is too early to say what will be the impact of UPI on the mobile wallet industry. But UPI is better for sure. One does not need to give personal details to transact through UPI and it will hopefully bring more people online. How much it will impact us remains to be seen.&quot;

How many people know about UPI?

For the success of any new platform, awareness is essential. People should know about it. While WION was trying to contact banks for a quote, this reporter talked to five individuals of five different banks who were into retail banking. None of them knew about UPI. The retail bankers communicate with account holders in the banks and usually apprise them of new developments. So, it is important that all 21 banks first make their employees aware about UPI.

(ItzCash is part of Essel Group, the company that owns and operates WION and www.wionews.com)

&nbsp;

&nbsp;&nbsp;

At present, the number of annual non-cash transactions per person in India stands at just six

At present, the number of annual non-cash transactions per person in India stands at just six. According to the World Payments Report, Finland, with 451 non-cash transactions per person in 2013, is ranked first. The United States comes second with 390. China also had 50 non-cash transactions per person in 2013. Compared to India, China has pulled ahead in its attempt to switch to a non-cash economy. The ‘Pocket’ app of ICICI bank, Axis Bank’s Axis pay, Bank of Maharashtra’s MahaUPI, Federal Bank’s Lotza are now available for downloading. These are the new Unified Payments Interface-enabled (UPI-enabled) apps launched on Playstore. In a few months’ time, these will be available on iOS as well. The National Payments Corporation of India (NPCI), which initiated and designed UPI, has approved 21 Indian banks to launch their UPI apps. UPI, in a way, is a better and improved version of the present mobile/e-payment tool, IMPS (Immediate Payment Service). UPI enables an individual to transfer funds from one account to another in two simple steps. After downloading the app of any bank, UPI generates a virtual payment address (VPA) that is unique to each account. While transferring money to any other account, one just needs to know the VPA of that account. One needs to authenticate it with a password and it’s done. Similarly, if someone wants to buy a book online, the e-commerce site will ask for the purchaser’s VPA to receive the amount, then authenticate the transaction with a password and complete the payment process. Thus, a person need not fill his/her card details or follow a two password and an OTP process for buying anything online. Similarly, there is no requirement of any account number, IFSC (swift) code, branch name, etc. for doing an account to account transfer. Another important feature of UPI is that one doesn’t need to use the app of the bank in which a person holds the account. The UPI app of any bank can be used for any account in another bank. One can also link multiple accounts in multiple banks to one UPI app. The Interface will be in competition with the existing online tools such as Net banking, NEFT, RTGS, etc. and will increase the competition within the banks as well. This may improve the efficiency of the banks. However, with UPI, one can do a transaction to the tune of a maximum of 100,000 Indian Rupees ($1500 approximately). Will it make the Indian economy cashless? UPI is being perceived as a major step towards pushing India in the direction of a cashless economy. However, in order to use UPI, one needs to have a bank account. According to a report by the Bank of India, 41 per cent of the population in India does not access banking facilities, of which 40 per cent is in urban areas and 61 per cent in rural areas. New Delhi has recently launched a scheme called Jan Dhan Yojana that aims to bring banking to the masses. But while the number of accounts has increased, reports suggest that most of the new accounts are lying dormant. Also, UPI requires one to have a smartphone, internet connection and basic digital literacy. Last year, this journalist went on a field survey in the central Indian state of Madhya Pradesh. The interaction was mainly with people of three income classes in villages just 20 kilometres from the city of Bhopal. People across the income classes carried smartphones but they had never heard about google or e-mail. The phone was just used for calling, messaging and watching videos on youtube. So, there is a large section of the Indian population which has bank accounts and smartphones but are not literate enough to use the UPI app. But the UPI app may push several digitally and financially literate people to move more towards a world of cashless transactions. Also, in the long run, it may benefit small businesses such as corner stores, cloth shops etc. Currently, a fraction of the 10 million plus retailers in India accept card payments. As of today, only 0.6 million do. Since, both the number of transactions and the value of transaction in a small retail shop per day is low, it is expensive for them to maintain card payment gateway. However, with UPI, they can now easily do cashless transactions at a very low cost. According to a NPCI report, it is less than Rs 0.45 for each UPI transaction. So, a cashless economy may be a distant dream as of now but a less-cash economy is certainly a distinct possibility. How will it impact the e-wallet industry? There are two types of e-wallets in India with their differing business models. One is like that of ItzCash that accepts physical cash at its centres, converts it into digital currency, safekeeping in a wallet and then transferring it to any part of the country. According to Naveen Surya, the managing director of ItzCash, “Our businesses won’t get affected due to UPI. We cater to the unbanked section of the population, mainly daily wage earners, agriculture labourers, etc. Since the prerequisite for using UPI is having a bank account, it won’t affect us.” However, there are other types of e-wallets such as Paytm, freecharge, mobikwik, instamojo etc. where an individual transfers money from his bank account to the wallet to make payments for cab rides, movie tickets, etc. With UPI, people can easily bypass these e-wallets unless they have an incentive. The incentives mean discounts, rewards or cashbacks from the e-wallet companies. But that is unsustainable in the long run. Right now, NPCI has approved UPI only for banks. According to Ruchir Kanakia, head, business development & operations, Instamojo, "It is too early to say what will be the impact of UPI on the mobile wallet industry. But UPI is better for sure. One does not need to give personal details to transact through UPI and it will hopefully bring more people online. How much it will impact us remains to be seen." How many people know about UPI? For the success of any new platform, awareness is essential. People should know about it. While WION was trying to contact banks for a quote, this reporter talked to five individuals of five different banks who were into retail banking. None of them knew about UPI. The retail bankers communicate with account holders in the banks and usually apprise them of new developments. So, it is important that all 21 banks first make their employees aware about UPI. (ItzCash is part of Essel Group, the company that owns and operates WION and www.wionews.com)

India?s Unified Payment Interface: All you need to know

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