Peers back Paytm in fight against telcos, Trai over financial frauds
Post by Admin on Friday, Oct 09, 2020
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New Delhi | Mumbai: Homegrown digital payments providers, including PhonePe and Mobikwik, have sought to join Paytm in a legal battle against the telecom regulator and mobile service providers over financial frauds where customers are targeted through calls and SMSes.
These companies, through industry body Internet and Mobile Association of India (IAMAI), have submitted a writ intervention appeal in the Delhi High Court to become party in a case by Paytm’s parent One97 Communications against the Telecom Regulatory Authority of India (Trai) and telcos including Reliance Jio, Bharti Airtel and Vodafone Idea (Vi) for failing to provide adequate safeguards to curb frauds.
IAMAI blamed Trai for not heeding their complaints of fraudsters duping users via fake SMS headers and phishing calls. It said digital wallet providers have suffered “considerable damage” to their brand reputations and public trust due to lax implementation of regulations by telecom industry participants.
The chief justice is yet to give his nod to IAMAI’s plea to become party to the case that had its fifth hearing on Tuesday.
“Like the petitioners (Paytm), the applicant’s members, who are payment system operators (PSOs), have also suffered considerable damage to their reputation, goodwill and the public’s trust in them due to the proliferation of unsolicited and fraudulent commercial communication over phone calls and SMS,” IAMAI said in the document filed on September 18. ET has seen a copy of the intervention application.
An email sent to IAMAI for comments didn’t elicit a response as of press time Tuesday.
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