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1. Objective
This Policy defines the acceptable and prohibited usage of the UPI facility provided for Wallet Load on nxtbanking.ai. This Policy aims to:
- Prevent QR misuse
- Comply with RBI/NPCI rules
- Restrict unauthorized collection
- Protect the Company from legal liability
- Prevent money laundering & fraud risks
2. Nature of UPI Facility
The UPI feature provided to Partners is:
- For self-funding only
- Linked to closed-loop business wallet
- Restricted to authorized business partners
It is NOT:
- A merchant QR
- A payment collection service
- A P2P transfer facility
- A public QR acceptance system
3. Strict Prohibition on QR Forwarding
The Partner MUST NOT:
- Share/forward the UPI QR to any customer or public
- Accept payments from unknown persons
- Use the QR to collect money for goods/services
- Accept online marketplace payments
- Use the QR as a business acceptance tool
Any forwarded QR = Immediate Policy Violation
4. Public Collection is Illegal
The following actions are considered financial fraud and violation of RBI/NPCI rules:
- Receiving money from the public
- Accepting customer payments for wallet load
- Acting as an unlicensed payment collector
- Using the wallet for merchant transactions
This is strictly prohibited and treated as misuse.
5. Third-Party Deposits Prohibited
Partner agrees that:
- Only their own bank account/UPI ID may be used to load funds
- Deposits from customers, relatives, agents, or any third party are prohibited
- Third-party funds will be considered suspicious/illegal
Third-party deposits may lead to:
- Wallet freeze
- Transaction blocking
- Account suspension
- Reporting to bank/authorities
6. Money Laundering Risk & Legal Consequences
As per PMLA (Prevention of Money Laundering Act):
AML Red Flags:
- Unknown fund source
- Layering of funds
- Third-party deposits
- Public QR collection
Upon detection:
- Wallet will be immediately blocked
- KYC/AML review will be initiated
- Funds may be seized until clearance
Case may be reported to:
- NPCI
- Bank
- Cyber Crime
- Law Enforcement
Partner bears 100% responsibility for any legal violation.
7. Automated System-Level Enforcement
nxtbanking.ai may implement:
- Algorithms to detect third-party UPI IDs
- High-frequency load alerts
- Blocking unusual patterns
- Wallet freeze on violation
- Permanent ban for repeated misuse
Company reserves the right to stop any suspicious UPI transaction.
8. Liability Clause
Partner agrees:
- They are solely responsible for the source of funds
- They bear full liability for public collection
- They bear all bank penalties, reversals, chargebacks
- Company shall not be held liable for ANY misuse
Partner indemnifies the Company against:
- Fraud
- Misuse of QR
- AML violations
- RBI guideline breaches
- Third-party disputes
This clause fully protects Laraware Private Limited.
9. Wallet Freeze & Termination Rules
Wallet will be immediately frozen if:
- QR is forwarded to public
- Payments from unknown parties are detected
- Customer disputes arise
- Suspicious transactions occur
After investigation:
- Wallet may be permanently disabled
- Funds may be withheld
- Legal action may be initiated
10. No Refund for Misused Funds
Funds added through illegal means or third-party deposits:
- Will NOT be refunded
- Will be held until AML clearance
- May be forfeited upon violation
11. Policy Acceptance
By using the UPI facility, the Partner confirms:
- They have read and understood this Policy
- They will use the QR strictly for self-funding
- They accept all legal responsibilities
- They understand misuse may lead to legal prosecution
Contact Information
For UPI-related queries:
- Company: Laraware Private Limited
- Support Email: support@laraware.com
- Fraud Reporting: nodal@laraware.com
- Website: www.nxtbanking.ai
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