Economy
BHIM UPI: NPCI says it won’t be responsible for loss or fraud, user fully takes the risk
National Payments Corp of India (NPCI), which is set up as a Section 25 company under the Companies Act 1956 (now Section 8 of Companies Act 2013), and is seen promoting its Unified Payments Interface (UPI)- based Bharat Interface for Money application (BHIM) app, says it should not held responsible for any loss, claim or damage suffered by the user. What is more shocking are the terms and conditions (T&C) for the UPI BHIM app from NPCI, which are one sided and affords no protection whatsoever to the end user or consumer. 
 
In its terms and conditions for use of the BHIM UPI app, the company, promoted by 10 banks, says, "NPCI does not hold out any warranty and makes no representation about the quality of the UPI services or BHIM application. The user agrees and acknowledges that NPCI shall not be liable and shall in no way be held responsible for any damages whatsoever whether such damages are direct, indirect, incidental or consequential and irrespective of whether any claim is based on loss of revenue, interruption of business, transaction carried out by the user, information provided or disclosed by issuer bank regarding user’s account(s) or any loss of any character or nature whatsoever and whether sustained by the User or by any other person. While NPCI shall endeavour to promptly execute and process the transactions as instructed to be made by the user, NPCI shall not be responsible for any interruptions, non-response or delay in responding due to any reason whatsoever, including due to failure of operational systems or any requirement of law."
 
 
The T&C of NPCI are not easily available and one needs to search for it. But whatever is stated in the T&C documents, appears completely one-sided. Take for example point 6.2 in the T&C documents, which emphasises that only the user is responsible for any failed transaction or any loss and neither NPCI nor the bank can be held responsible. It says, "NPCI shall not be liable for any loss, claim or damage suffered by the User and/or any other third party arising out of or resulting from failure of any transaction initiated via BHIM App on account of time out transaction i.e. where no response is received from NPCI or the beneficiary bank to the transaction request. NPCI or the beneficiary Bank shall also not be liable for any loss, damage and/or claim arising out of or resulting from wrong beneficiary details, mobile number and/or account details being provided by the User." 
 
This means, even if NPCI or the bank fails to send the necessary response, it is the user who is liable for the loss. Therefore, NPCI, the developer and promoter of this UPI BHIM app, and banks on its platform, are under no obligation to send responses to these transactions within time. "NPCI shall not be responsible for any electronic or mechanical defect, data failure or corruption, viruses and bugs or related problems that may be attributable to User telecommunication equipment and/ or the Services provided by any Service Provider," NPCI says.
 
Remember the Bank of Maharashtra case, where fraudsters siphoned off Rs25 crore from the lender, using a bug in its UPI app? For such kind of misuse, too, NPCI says the payer is responsible. It states, "The Payer is solely responsible for the accuracy and authenticity of the payment instructions issued via BHIM App. Once a payment instruction is issued, the same cannot be subsequently revoked by the Payer. NPCI accepts no liability for any consequences arising from erroneous information provided by Payer in payment instructions."
 
Now, let us see what happened in the Bank of Maharashtra case (Read: UPI bug costs Bank of Maharashtra about Rs25 crore). P Hota, Managing Director and Chief Executive of NPCI, told the Economic Times that the Pune-based bank had procured an UPI solution from a vendor (reported to be city-based InfrasoftTech), which had a bug that resulted in the fund moving out of the accounts without the sender's account having the necessary funds.
 
As per the procedure, when the UPI app receives such a request, it sends a query to the other party (customer) and, after obtaining acceptance, it checks fund availability in the UPI-linked bank account. However, the UPI app used by Bank of Maharashtra sent two messages to NPCI, one as 'success' and other as 'error:insufficient funds'. In these fraudulent transactions, NPCI only read the first message and cleared the payment.  
 
This is an interesting situation because the money was taken from accounts which did not have necessary funds. So, who will bear the loss? As per NPCI's T&C, it cannot be the company or the bank, but the user. However, in this case, the user was not even aware about this fund transfer. In addition, NPCI is not under any obligation to keep a record of instructions, making the job of the investigation agencies difficult.
 
In its T&C documents, NPCI states that it has no liability or obligation to keep a record of the instructions to provide information to the user or for verifying the instructions. "All instructions, requests, directives, orders, directions, carried out by the User via BHIM App, are based upon the User’s decisions and are the sole responsibility of the User," it says.
 
After making claims that over one crore users have downloaded the BHIM app from Google Play Store, the government is now trying to boost its actual use. The government has come out with a customer referral scheme, which promises to pay Rs10 per reference to the referrer and Rs25 for the new user for downloading and transacting from BHIM app. But this will happen only on completion of three unique transactions of Rs50 in total to any three unique customers or merchants.
 
Here is the copy of the T&C of NPCI for UPI BHIM app…
 

User

COMMENTS

krishna

2 weeks ago

BOM became cashless!

Sudesh Pratap

2 weeks ago

I am surprised that people are surprisingly talking about UPI and NPCI in this regard. Have you come across any app or any service provider taking responsibility ? Unfortunately it includes all apps, the ISPs including social media platforms like twitter-facebook etc. This is the risk for the user/consumer likeall others.

Peeyush Agarwal

2 weeks ago

It's concerning... I understand that anything can be hacked... I understand that NPCI can not be made responsible for anything and everything like BOM issue... But how can the they use following words... "NPCI does not hold out any warranty and makes no representation about the quality of the UPI services or BHIM application"...??? At least for the APP or any wrong action by app is your responsibility and you can not deny it under common law, whatever you put as a person precondition in T&C... This will only hamper its popularity... one side GOI n RBI claim that BHIM n UPI are extremely safe... Government of India and RBI should look into it urgently...

Peeyush Agarwal

2 weeks ago

It's concerning... I understand that anything can be hacked... I understand that NPCI can not be made responsible for anything and everything like BOM issue... But how can the they use following words... "NPCI does not hold out any warranty and makes no representation about the quality of the UPI services or BHIM application"...??? At least for the APP or any wrong action by app is your responsibility and you can not deny it under common law, whatever you put as a person precondition in T&C... This will only hamper its popularity... one side GOI n RBI claim that BHIM n UPI are extremely safe... Government of India and RBI should look into it urgently...

Peeyush Agarwal

2 weeks ago

It's concerning... I understand that anything can be hacked... I understand that NPCI can not be made responsible for anything and everything like BOM issue... But how can the they use following words... "NPCI does not hold out any warranty and makes no representation about the quality of the UPI services or BHIM application"...??? At least for the APP or any wrong action by app is your responsibility and you can not deny it under common law, whatever you put as a person precondition in T&C... This will only hamper its popularity... one side GOI n RBI claim that BHIM n UPI are extremely safe... Government of India and RBI should look into it urgently...

Peeyush Agarwal

2 weeks ago

It's concerning... I understand that anything can be hacked... I understand that NPCI can not be made responsible for anything and everything like BOM issue... But how can the they use following words... "NPCI does not hold out any warranty and makes no representation about the quality of the UPI services or BHIM application"...??? At least for the APP or any wrong action by app is your responsibility and you can not deny it under common law, whatever you put as a person precondition in T&C... This will only hamper its popularity... one side GOI n RBI claim that BHIM n UPI are extremely safe... Government of India and RBI should look into it urgently...

Peeyush Agarwal

2 weeks ago

It's concerning... I understand that anything can be hacked... I understand that NPCI can not be made responsible for anything and everything like BOM issue... But how can the they use following words... "NPCI does not hold out any warranty and makes no representation about the quality of the UPI services or BHIM application"...??? At least for the APP or any wrong action by app is your responsibility and you can not deny it under common law, whatever you put as a person precondition in T&C... This will only hamper its popularity... one side GOI n RBI claim that BHIM n UPI are extremely safe... Government of India and RBI should look into it urgently...

Peeyush Agarwal

2 weeks ago

It's concerning... I understand that anything can be hacked... I understand that NPCI can not be made responsible for anything and everything like BOM issue... But how can the they use following words... "NPCI does not hold out any warranty and makes no representation about the quality of the UPI services or BHIM application"...??? At least for the APP or any wrong action by app is your responsibility and you can not deny it under common law, whatever you put as a person precondition in T&C... This will only hamper its popularity... one side GOI n RBI claim that BHIM n UPI are extremely safe... Government of India and RBI should look into it urgently...

Peeyush Agarwal

2 weeks ago

It's concerning... I understand that anything can be hacked... I understand that NPCI can not be made responsible for anything and everything like BOM issue... But how can the they use following words... "NPCI does not hold out any warranty and makes no representation about the quality of the UPI services or BHIM application"...??? At least for the APP or any wrong action by app is your responsibility and you can not deny it under common law, whatever you put as a person precondition in T&C... This will only hamper its popularity... one side GOI n RBI claim that BHIM n UPI are extremely safe... Government of India and RBI should look into it urgently...

Peeyush Agarwal

2 weeks ago

It's concerning... I understand that anything can be hacked... I understand that NPCI can not be made responsible for anything and everything like BOM issue... But how can the they use following words... "NPCI does not hold out any warranty and makes no representation about the quality of the UPI services or BHIM application"...??? At least for the APP or any wrong action by app is your responsibility and you can not deny it under common law, whatever you put as a person precondition in T&C... This will only hamper its popularity... one side GOI n RBI claim that BHIM n UPI are extremely safe... Government of India and RBI should look into it urgently...

Peeyush Agarwal

2 weeks ago

It's concerning... I understand that anything can be hacked... I understand that NPCI can not be made responsible for anything and everything like BOM issue... But how can the they use following words... "NPCI does not hold out any warranty and makes no representation about the quality of the UPI services or BHIM application"...??? At least for the APP or any wrong action by app is your responsibility and you can not deny it under common law, whatever you put as a person precondition in T&C... This will only hamper its popularity... one side GOI n RBI claim that BHIM n UPI are extremely safe... Government of India and RBI should look into it urgently...

Peeyush Agarwal

2 weeks ago

It's concerning... I understand that anything can be hacked... I understand that NPCI can not be made responsible for anything and everything like BOM issue... But how can the they use following words... "NPCI does not hold out any warranty and makes no representation about the quality of the UPI services or BHIM application"...??? At least for the APP or any wrong action by app is your responsibility and you can not deny it under common law, whatever you put as a person precondition in T&C... This will only hamper its popularity... one side GOI n RBI claim that BHIM n UPI are extremely safe... Government of India and RBI should look into it urgently...

Peeyush Agarwal

2 weeks ago

It's concerning... I understand that anything can be hacked... I understand that NPCI can not be made responsible for anything and everything like BOM issue... But how can the they use following words... "NPCI does not hold out any warranty and makes no representation about the quality of the UPI services or BHIM application"...??? At least for the APP or any wrong action by app is your responsibility and you can not deny it under common law, whatever you put as a person precondition in T&C... This will only hamper its popularity... one side GOI n RBI claim that BHIM n UPI are extremely safe... Government of India and RBI should look into it urgently...

Peeyush Agarwal

2 weeks ago

It's concerning... I understand that anything can be hacked... I understand that NPCI can not be made responsible for anything and everything like BOM issue... But how can the they use following words... "NPCI does not hold out any warranty and makes no representation about the quality of the UPI services or BHIM application"...??? At least for the APP or any wrong action by app is your responsibility and you can not deny it under common law, whatever you put as a person precondition in T&C... This will only hamper its popularity... one side GOI n RBI claim that BHIM n UPI are extremely safe... Government of India and RBI should look into it urgently...

jaideep shirali

2 weeks ago

Not surprised by the conditions, I would be glad to know one government department or undertaking that takes responsibility for anything. Banks charge us for the 'safe deposit' lockers, but legally they have no responsibility if anything happens to the locker contents! BMC takes no responsibility for the potholes. Why deny NPCI this opportunity to take all the credit and none of the blame ?

REPLY

Gupta

In Reply to jaideep shirali 2 weeks ago

:-)

Gupta

In Reply to jaideep shirali 2 weeks ago

:-)

Chill on transgender issues, but not too chill (The Funny Side)
This columnist's teenage daughter explained the latest politically correct views on "gender identity" to her mother and me.
 
I learned that many young people in Asia are adopting the position promoted by two terrifying extremist groups in the West, a scary US tribe called "Californians" and the UK's even more frightening "Guardian Readers".
 
These groups say you must legally recognise people as whatever they claim to be -- or risk being sued for discrimination.
 
I'm pretty chill on all this. If a man feels he is a woman or a dodgy real estate salesman thinks he is President of the United States, let them.
 
Furthermore, I like the idea that everyone should be legally forced to recognise, for example, that this writer is a handsome, intelligent, good man trapped in the body of a lazy, evil dwarf.
 
But my chill attitude was challenged when a US reporter friend told me about Pablo Gomez Jr, a man recently charged with the murder of a young woman. After his arrest, Gomez announced that he was a girl "inside" and thus needed to be sent to a women's prison. In most countries, police would have slapped him around and told him not to be silly. But this happened in California so law enforcement officers are now legally required to hold doors open for him, comment on his hair and the like.
 
Obama spread the California policy across the country. In most states now, police must ask arrested people "How do you identify" and accept the answer given.
 
"A person with a full beard and complete male 'plumbing' who claims to identify as female will be put in the female cell block," Deputy Sheriff Paul Harding confirmed. "Complaints from female prisoners about the person who looks exactly like a man sleeping and showering with them in their cell block are not valid."
 
A UK reporter told me that British murderer Peter Laing also told cops that he felt like a girl inside. They duly sent him to a women's prison under his chosen name (Ms Paris Green) where he kept having sex with the other inmates. They told him to behave and transferred him to a second women's jail -- where the same thing happened. "He's just trying to manipulate the system," complained a family member of his victim. Police have now risked the wrath of Guardian Readers by putting him in a male jail.
 
A police friend tells me cops in Asia assign arrestees to male or female prisons after a simple visual check of their "undercarriage". In Thailand, this means that many "ladyboys" end up in male prisons and some are delighted, according to a 2013 study by Phuketwan, a Thai news service: "Ladyboys commit crimes, most often petty theft, just so they can return to the jail."
 
I told my kids that laws which force police officers and teachers to let male tricksters into females' safe spaces were a bad thing, but the most important thing was to be kind to everyone, including people of non-standard gender.
 
I also told them that I myself started life as a man trapped in a woman's body. And then, after nine months, I was born.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

User

COMMENTS

SRINIVAS SHENOY

2 weeks ago

You have supplied information which I was unaware. It is always worthwhile to be knowledgeable.

SRINIVAS SHENOY

2 weeks ago

You have supplied information which I was unaware. It is always worthwhile to be knowledgeable.

Nitin Karani

2 weeks ago

Surprised you published this piece of crap.

Nitin Karani

2 weeks ago

Surprised you published this piece of crap.

Nitin Karani

2 weeks ago

Surprised you published this piece of crap.

Nitin Karani

2 weeks ago

Surprised you published this piece of crap.

Parthasarathy Murugesan

2 weeks ago

Already I lost 2300 rupees by transacting through Bhim. Nearly 3 months gone, amount was not refunded. I am not going to use this forever. Goodbye.

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