Smile Money Pvt. Ltd. – Terms & Conditions
 Rajkot, Gujarat | https://smilemoney.in | 7070373711
 

1. Introduction

These Terms & Conditions (“T&C”) constitute a legally binding agreement between Smile Money Pvt. Ltd. (“Company”) and any Retailer, Distributor, Merchant, User, or Partner who accesses or utilizes any service offered by the Company. The T&C are established under the authority of the Indian Contract Act, 1872, and govern the use of all digital financial services including AEPS, DMT, Recharge, Utility Payments, Payment Gateway (PG), POS, QR Payments, Value Added Services, Micro ATM, and other fintech services provided by the Company.

The acceptance of these T&C is mandatory for availing any service. Any violation, misuse, or non‑compliance may result in suspension, termination, financial penalties, or legal actions under applicable laws of India.

2. Regulatory Framework

The Company and all Retailers/Merchants must comply with the following statutory frameworks:

1. **Reserve Bank of India (RBI) Regulations:**
 - RBI Master Direction – Know Your Customer (KYC) Direction, 2016 (Updated 2023).
 - RBI Guidelines on Regulation of Payment Aggregators and Payment Gateways, 2020.
 - RBI Outsourcing of Financial Services Directions.
 - RBI Electronic Payment Standards & Security Framework.
 

2. **Anti‑Money Laundering (AML) Laws:**
 - Prevention of Money Laundering Act (PMLA), 2002.
 - Prevention of Money Laundering Rules, 2005.
 - Customer Due Diligence obligations under Rule 9.
 - Enhanced Due Diligence requirements for high‑risk entities.
 

3. **Information Technology & Cyber Laws:**
 - Information Technology Act, 2000.
 - Section 43A regarding compensation for failure to protect data.
 - Information Technology (Reasonable Security Practices and Procedures) Rules, 2011.
 - CERT‑In Cyber Security Directions dated 28 April 2022 (Mandatory nationwide compliance).
 - Digital Personal Data Protection Act, 2023 (as applicable).

4. **Taxation Laws:**
 - Income Tax Act, 1961 (TDS, PAN validation, reporting obligations).
 - Goods and Services Tax Act (GST), 2017 (Tax invoice, ITC rules, compliance reporting).
 

5. **NPCI Guidelines:**
 - AEPS Operating Circulars (NPCI/AEPS/OC/latest amendments).
 - RuPay & IMPS guidelines.
 - Micro ATM Interoperability Standards.
 - Dispute Management System (DMS) Rules.

All retailers/merchants must strictly follow the above regulations while using the Company’s services.

3. Definitions

This T&C document uses the following definitions:

• Retailer – An individual or entity authorized by the Company to deliver fintech services to end‑customers.

• Distributor – A partner entity responsible for appointing and managing retailers.

• Merchant – A business entity using Company’s PG, POS, QR, or other acceptance solutions.

• User – Any individual using any digital service of the Company.

• Transaction – A financial or service request initiated by the User or Retailer.

• Chargeback – A dispute mechanism governed by NPCI/Card networks.

• Device – Includes biometric scanners, POS, mATM, QR stands, and any hardware provided.

• Credentials – Login ID, passwords, API keys, biometric access, or digital certificates.

4. KYC, AML & Due Diligence

All stakeholders must comply with KYC/AML obligations under PMLA, 2002 and RBI KYC Master Directions. This includes:

- Mandatory Aadhaar/PAN validation.
 - OVD (Officially Valid Document) verification.
 - Biometric authentication where required.
 - Video KYC, eKYC, or offline KYC as per RBI norms.
 

Section 12 of PMLA requires reporting of Suspicious Transactions (STR). Retailers must immediately escalate any suspicious or fraudulent activity to the Company.

Enhanced Due Diligence (EDD) is required for high transaction volumes, unusual patterns, forged documents, blacklisted users, or repeated disputes.

5. Cyber Security & Data Protection

The Company adheres to strict cybersecurity frameworks under the IT Act, 2000 and CERT‑In Rules:

- Mandatory retention of system logs for 180 days.
 - Reporting cyber incidents to CERT‑In within 6 hours.
 - Encryption of sensitive data including biometrics, PAN, Aadhaar tokens.
 - Mandatory OTP/device binding for access control.
 

Retailers and Merchants must:

- Keep devices updated and protect login credentials.
 - Not store biometric data locally.
 - Report system compromise immediately.
 - Follow standards under ISO/IEC 27001 (as applicable).

6. Service-Specific Terms

Smile Money Pvt. Ltd. offers the following services in compliance with RBI, NPCI, and IT Act:

**1. AEPS Services:** Governed by NPCI AEPS Operating Regulations. Retailers must ensure genuine biometric capture and prevent impersonation.

**2. Domestic Money Transfer (DMT):** Subject to RBI NEFT/IMPS rules. Transactions are non‑reversible once processed.

**3. Payment Gateway Services:** Governed by RBI PA/PG Guidelines, 2020. Merchants must comply with prohibited and restricted category norms.

**4. POS & QR Services:** Operate under card network rules and RBI Merchant Acquiring norms.

**5. Micro ATM:** Retailer responsible for proper device operation under NPCI interoperability standards.

**6. Recharge, Utility, and Value‑Added Services:** Governed by Indian Contract Act and relevant service‑provider policies.

7. Chargeback, Dispute & Liability Framework

Chargebacks are processed strictly under NPCI DMS Rules, RBI Frameworks, and card network guidelines.

Liability Structure:

- If biometric fraud occurs, the Retailer is fully liable.
 - If a transaction is executed with correct authentication, the User is liable.
 - For PG/POS transactions, merchant must provide proof (invoice, customer consent, etc.).
 

Dispute timelines:

- AEPS: As per NPCI AEPS Dispute Management timelines.
 - Card POS: As per Visa/MasterCard/RuPay rules.
 - PG: T+5 to T+45 depending on transaction type.

Fraudulent disputes filed knowingly may lead to legal prosecution under Section 420 IPC & Section 66 of IT Act.

8. Settlement Rules

Settlement of funds will follow RBI Settlement Circular (DPSS.CO.PD No. 629/02.14.003/2016‑17).

Standard timelines:

- T+1 for non‑risk transactions.
 - T+2 for high‑risk or PG transactions.
 

Retailer responsibilities:

- Maintain financial records for minimum 8 years (as per Income Tax Act).
 - Ensure bank details are valid and updated.
 - Handle GST compliance where applicable.

9. Device Liability

All devices (Biometric scanners, POS, mATM) provided by the Company remain Company property unless purchased. Retailers must:

- Prevent unauthorized access.
 - Not root, modify, or tamper devices.
 - Report loss immediately.
 

Tampering is punishable under Section 65 of the IT Act, 2000.

10. Fraud Prevention & Monitoring

The Company actively monitors fraud patterns under RBI Cyber Security Framework and may:

- Suspend services without notice.
 - File STR/SAR under PMLA.
 - Cooperate with law‑enforcement agencies.
 

Retailers involved in fraud face:

- FIR under IPC Sections 419, 420.
 - Prosecution under IT Act Sections 66C, 66D.
 - Permanent termination and financial penalties.

11. Termination

Violations of any law (IT Act, GST Act, PMLA, RBI Directions) may result in immediate termination. The Company may also terminate for:

- Misuse of services.
 - Chargeback abuse.
 - Device tampering.
 - Non‑compliance with regulatory audits.

12. Governing Law

All disputes shall fall under the jurisdiction of competent courts in Rajkot, Gujarat.

The governing laws include:

- Indian Contract Act, 1872.
 - Information Technology Act, 2000.
 - PMLA, 2002.
 - GST Act, 2017.
 - Income Tax Act, 1961.
 - RBI and NPCI regulations.