Is it really Niyo of Equitas? What happens in case of Fr@ud?

So I received a call from Equitas Bank that my KYC is pending and I need to visit Malviye Nagar branch. I told them I opened the account via Niyo app and my KYC was done but the executive didn’t really understand what that means. She was insistent that I still need to do my KYC at Equitas, collect cheque book. I spoke to NiYo team and they suggested to ignore it. Which brings me to some of the really basic and critical question; who has the customer money? I am guessing it’s Equitas Bank as the partner bank. But in that case

  1. Should I not register for online banking with Equitas and take their chequebook? Which on the face of it seems tedious.

  2. in case Niyo gets bankrupt (I hope it doesn’t but it’s a small company afterall), who would be responsible for all bank related activities? I don’t even have any relationship with Equitas.

  3. And in case I do register for online banking with Equitas, will both my Niyo and Equitas online banking accounts work simultaneously? Brings in a lot of security questions.

  4. Also I am going by the assumption here that it wasn’t a fr@ud call but it was (as she was insistent on KYC bit), Niyo should really educate it’s customers on such possibilities.

I tried to look for such clauses in T&C’s but couldn’t really find any. So thought of posting it here.

Also btw, just to give you a feeler of how weird Equitas customer service is, that executive reached out to me on my WhatsApp to let her know if I need any assistance ( which could have been sweet if only if it was professional). Attaching the screenshot.

Hey Sanjay! We sincerely regret the communication gap that has been developed here leading to this miss. Please allow me to help you get this clarified one by one.

  1. Please go ahead and register for the online banking with Equitas Small Finance Bank. All you need to do is log in to Equitas net banking page and register yourself as a new user.
    In order to get a chequebook, however, you would need to the visit the nearest Equitas Small Finance Bank branch and update your signature. Once your signature is updated the bank will issue the cheque book to you.

  2. You do have a relationship with Equitas now as your savings account is essentially created with Equitas Small Finance Bank itself. The account follows all regulatory guidelines issued by the Reserve Bank of India. Your money is insured upto ₹5 lacs covered under ‘Deposit Insurance and Credit Guarantee Corporation’, a wholly owned subsidiary of the Reserve Bank of India. This is to provide the measure of protection to depositors.

  3. Once you have registered successfully with the online banking services, your NiyoX account only will be used as this would not lead to creation of 2 different accounts-Niyo’s and Equitas’s. It is one and the same.

  4. We have certainly made a note of this and we will ensure a stern feedback is passed to avoid such instances in the future.

Thank you for bringing this to our notice Sanjay. Hope we were able to address your concerns. LK

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Thanks Lucky, this is helpful. Couple of follow up questions -

So are you suggesting that I create Equitas online banking account and actively use it? The transactions I make their will be reflected here as well, right?

Do I need to also have Equitas Debit card too?

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