The District Consumer Disputes Redressal Commission in Delhi has ruled that Paytm Payments Bank Limited failed in its service obligations regarding a failed insurance transaction. According to LiveLaw, the panel, led by President Monika Aggarwal Srivastava alongside two members, ordered the bank to refund ₹40,466 to the complainant, Tarun Mangla. The tribunal determined that the bank was responsible for debiting the wallet while the insurer remained unpaid.
Mangla paid an insurance premium to ICICI General Insurance via the Paytm app on July 6, 2022. LiveLaw reported that the interface displayed the transaction as successful and the funds left his wallet. However, the insurer’s records showed no credit on that date. An email from the insurer on July 14, 2022, marked the initial attempt as failed. Consequently, Mangla paid the same sum again through Razorpay on July 14, 2022, which triggered the issuance of the policy.
Paytm argued it functioned as a digital payment conduit and that the July 6 transfer had been processed correctly. The bank noted it emailed the insurer on July 14, 2022, asking for clarification, and claimed the insurer confirmed services were rendered against the remittance. In contrast, the insurer stated its records showed the money arriving only on July 14, 2022, after the second payment. LiveLaw noted the commission rejected Paytm’s defense, finding the bank liable for showing success without ensuring the transfer.
The complainant had previously sent a legal notice on August 1, 2022, after Paytm support advised him to wait 72 hours for reconciliation. He filed the consumer complaint on August 26, 2022, seeking a refund with 18% annual interest. The commission awarded the principal amount plus 7% annual interest from July 6, 2022. It also granted ₹25,000 in compensation and ₹5,000 for legal costs. The bank must comply within 60 days, or the award will accrue 8% interest from September 18, 2026.