- 31-Aug-2025
- Transportation and Traffic Laws
Online gift cards have become popular for gifting and corporate incentives. In India, they are treated as prepaid payment instruments and are regulated to ensure consumer protection and prevent misuse. Various legal standards and RBI guidelines apply to their issuance, expiry, and redemption processes.
Gift cards fall under the category of prepaid payment instruments as per RBI guidelines and must comply with relevant regulations.
Only authorized entities such as banks or regulated payment service providers can issue gift cards to ensure trust and security.
RBI mandates clear disclosure of expiry dates and prohibits unfair expiry practices. Consumers should be given reasonable validity to use gift cards.
Terms and conditions related to use, refund, and dispute resolution must be transparent and fair under the Consumer Protection Act, 2019.
Issuers should implement robust anti-fraud mechanisms like secure codes, OTP verification, and transaction monitoring.
Gift cards should be redeemable fully or partially for goods and services on the issuing platform or partnered merchants without hidden charges.
Issuers must protect user data in compliance with IT Act and data protection laws.
Clear policies should specify liability and procedure in case of lost or stolen gift cards.
Consumers should read terms carefully, especially expiry and refund policies.
Use gift cards only on verified and trusted platforms.
Issuers should provide easy access to balance checks and transaction history.
Prompt grievance redressal mechanisms must be in place.
A consumer purchases an online gift card for ₹5,000 from an e-commerce platform but finds it expired after six months without prior notice.
File a complaint with the platform citing unfair expiry practice.
Approach consumer forum or grievance officer for resolution.
If unresolved, escalate to RBI or consumer protection authorities.
Request refund or extension based on consumer rights.
Answer By Law4u Team
Discover clear and detailed answers to common questions about Cyber and Technology Law. Learn about procedures and more in straightforward language.
