It was a personal observation today that an Uber driver cancelled my scheduled trip and still the amount was immediately debited to by Paytm account.
I later found out that this experience has been observed by many others who have reported it on Twitter.
I suppose Uber will refund the payment. But there appears to be a larger issue here.
It is observed that the Uber app shows the trip map where the vehicle has not moved out from its location and the time of debit was the time supposed to be at the start of the trip. Both these should have been recognized by the app to conclude that the trip did not take place and hence the debit should not have arisen.
Alternatively, it is suspected that this is not merely a bug in the App but could be a fraud indulged in by some drivers. If the app can be used to debit an amount X without the trip having been undertaken, it is possible that it can debit any other amount and at any other time from the linked PayTm account. When there is an immediate debit after the driver’s cancellation, we may observe the debit and report it for refund. But if the debit is made after some time, it is possible that the users may not observe the unauthorized debit.
Further if the app has a bug which can raise a debit for a trip which has not taken place, it can perhaps be also used for altering the amount of debit.
Hence this bug indicates the possibility of a serious fraud.
At the same time, I also point out that Paytm debit note did not have a provision for immediate indication of an unauthorized transaction as is required under the RBI rules.
PayTm should check and introduce the change in their SMS notification as required under the Limited Liability Guideline.
I am waiting for a response from Uber and Paytm in this regard and later would take it up with RBI.
Any body else with similar experience may kindly inform.