abdullaharis
TF Buzz
A year ago, I was excited about the benefits offered by Niyo Global's zero forex credit card and zero balance savings account. Perfect for international travelers like myself, I signed up and booked a Fixed Deposit (FD) to meet the credit card eligibility. Everything went smoothly initially, and I used the card during my travels without any problems.
However, a few weeks later, my world turned upside down. My Niyo Global savings account was frozen due to a fraudulent transaction. A friend, unaware of the implications, sent funds received from a crypto sale that turned out to be tainted. Now, not only could I not access my own funds, but reaching customer support while abroad proved to be an exercise in futility. My attempts to understand the situation and seek a resolution were met with frustrating silence or unhelpful.
Upon returning to India, the gravity of the situation hit me. The frozen account meant I couldn't make payments on the linked credit card. Niyo Global, however, threw another curveball. They refused to liquidate the FD unless I paid at least 10% of the ballooning credit card bill. This was an impossible task with a frozen account!
Life has a way of moving forward, and for a while, the Niyo Global issue faded into the background. I got busy with job hunting and other commitments. However, the problem resurfaced when I attempted to secure a loan. My application was rejected due to unpaid creditcard bills. This triggered a series of discoveries that left me reeling.
It turned out Niyo Global had not liquidated the FD, and the interest on the credit card bill kept accumulating daily. What started as a manageable amount had snowballed into an exorbitant figure – almost 50% of the original FD amount in just eight months! This was an unbearable financial burden, especially considering the funds were readily available in the frozen FD.
Desperate to make a payment, I explored alternative options. Third-party payment apps like Cred seemed like a solution, but they only accepted payments from linked savings accounts, which in my case, was frozen. My attempts to communicate the situation to Niyo Global via email resulted in a response that simply reiterated the account freeze as the reason for everything.
The ongoing or deal with Niyo Global has taken a significant toll on my mental well-being.Sleepless nights filled with worry have become the norm. The helplessness and lack of progress from Niyo Global have pushed me to the brink. Determined to find a solution, I began researching online dispute resolution mechanisms and stumbled upon the RBI Ombudsman complaint filing process. But i that didn't help. They gave me same explanation as i received from bank.
The nearest Niyo Global branch is located in another state, making a physical visit impractical.While my friend's involvement in the initial transaction was unintentional, the consequences have fallen entirely on me.
Niyo Global Doesn't allow me to pay the credit card bill nor allow me to liquidate the FD. They requested me to pay 10% of the FD amount for credit card closure. But it is impossible due to savings account freeze. I tried third party apps like cred for credit card bill payment but failed.
Btw, It was mentioned in the Niyo Global's FAQ that if i don't pay the credit card bill within 60 days. The FD will be automatically liquidated. I have attached screenshots as proof.
I received below reply from RBI,
"Madam/Dear Sir,
Your complaint dated 19-09-2024 against SBM Bank (India) Limited under Reserve Bank Integrated Ombudsman Scheme, 2021 (RB-IOS)- N2024250XXXXXX
Greetings from the Reserve Bank of India!
We have carefully examined the captioned complaint and our observations are given here under.
2. In connection with your complaint regarding the FREEZE marked in the account and credit card, comments were sought from the Regulated Entity (RE) i.e. SBM Bank (India) Limited. The submission of the RE was examined and it is observed that the RE has acted in compliance of the orders of a Statutory or Law Enforcing Authority (LEA). The RE has marked FREEZE on the complainant’s account and credit card in accordance with the fraud reported in National Cyber Crime Reporting Portal (NCRP Portal) as per instruction received from the Andhra Pradesh Police. The RE had informed the same to the complainant vide their e-mail dated 14.09.2024 and 20.09.2024 with the details of concerned Police. The complainant is advised to liaise with the State Cyber Crime Unit / Investigating Police Officer to provide further instructions to the RE to remove the 'FREEZE' marked in the account and credit card. Post-receipt of instructions from the LEA, the RE will be able to remove the 'FREEZE' marked in the account and credit card. Hence, the complaint is closed as non-maintainable.
3. In view of the above, we are constrained to classify your complaint as non-maintainable and close it under clause 16(1)(a)10(1)(e) of the Reserve Bank - Integrated Ombudsman Scheme, 2021[1].
4. This is issued with the approval of RBI Ombudsman/Deputy RBI Ombudsman.
We appreciate your understanding.
Regards,
CRPC
Reserve Bank of India"
However, a few weeks later, my world turned upside down. My Niyo Global savings account was frozen due to a fraudulent transaction. A friend, unaware of the implications, sent funds received from a crypto sale that turned out to be tainted. Now, not only could I not access my own funds, but reaching customer support while abroad proved to be an exercise in futility. My attempts to understand the situation and seek a resolution were met with frustrating silence or unhelpful.
Upon returning to India, the gravity of the situation hit me. The frozen account meant I couldn't make payments on the linked credit card. Niyo Global, however, threw another curveball. They refused to liquidate the FD unless I paid at least 10% of the ballooning credit card bill. This was an impossible task with a frozen account!
Life has a way of moving forward, and for a while, the Niyo Global issue faded into the background. I got busy with job hunting and other commitments. However, the problem resurfaced when I attempted to secure a loan. My application was rejected due to unpaid creditcard bills. This triggered a series of discoveries that left me reeling.
It turned out Niyo Global had not liquidated the FD, and the interest on the credit card bill kept accumulating daily. What started as a manageable amount had snowballed into an exorbitant figure – almost 50% of the original FD amount in just eight months! This was an unbearable financial burden, especially considering the funds were readily available in the frozen FD.
Desperate to make a payment, I explored alternative options. Third-party payment apps like Cred seemed like a solution, but they only accepted payments from linked savings accounts, which in my case, was frozen. My attempts to communicate the situation to Niyo Global via email resulted in a response that simply reiterated the account freeze as the reason for everything.
The ongoing or deal with Niyo Global has taken a significant toll on my mental well-being.Sleepless nights filled with worry have become the norm. The helplessness and lack of progress from Niyo Global have pushed me to the brink. Determined to find a solution, I began researching online dispute resolution mechanisms and stumbled upon the RBI Ombudsman complaint filing process. But i that didn't help. They gave me same explanation as i received from bank.
The nearest Niyo Global branch is located in another state, making a physical visit impractical.While my friend's involvement in the initial transaction was unintentional, the consequences have fallen entirely on me.
Niyo Global Doesn't allow me to pay the credit card bill nor allow me to liquidate the FD. They requested me to pay 10% of the FD amount for credit card closure. But it is impossible due to savings account freeze. I tried third party apps like cred for credit card bill payment but failed.
Btw, It was mentioned in the Niyo Global's FAQ that if i don't pay the credit card bill within 60 days. The FD will be automatically liquidated. I have attached screenshots as proof.
I received below reply from RBI,
"Madam/Dear Sir,
Your complaint dated 19-09-2024 against SBM Bank (India) Limited under Reserve Bank Integrated Ombudsman Scheme, 2021 (RB-IOS)- N2024250XXXXXX
Greetings from the Reserve Bank of India!
We have carefully examined the captioned complaint and our observations are given here under.
2. In connection with your complaint regarding the FREEZE marked in the account and credit card, comments were sought from the Regulated Entity (RE) i.e. SBM Bank (India) Limited. The submission of the RE was examined and it is observed that the RE has acted in compliance of the orders of a Statutory or Law Enforcing Authority (LEA). The RE has marked FREEZE on the complainant’s account and credit card in accordance with the fraud reported in National Cyber Crime Reporting Portal (NCRP Portal) as per instruction received from the Andhra Pradesh Police. The RE had informed the same to the complainant vide their e-mail dated 14.09.2024 and 20.09.2024 with the details of concerned Police. The complainant is advised to liaise with the State Cyber Crime Unit / Investigating Police Officer to provide further instructions to the RE to remove the 'FREEZE' marked in the account and credit card. Post-receipt of instructions from the LEA, the RE will be able to remove the 'FREEZE' marked in the account and credit card. Hence, the complaint is closed as non-maintainable.
3. In view of the above, we are constrained to classify your complaint as non-maintainable and close it under clause 16(1)(a)10(1)(e) of the Reserve Bank - Integrated Ombudsman Scheme, 2021[1].
4. This is issued with the approval of RBI Ombudsman/Deputy RBI Ombudsman.
We appreciate your understanding.
Regards,
CRPC
Reserve Bank of India"
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