Indian telcos must refund overcharged customers'money, says TRAI

When conducting the audit, the auditor is required to report any instances of overcharging to the service provider in writing as soon as possible, but no later than one week after the observation

The Indian telecom companies have been ordered to refund any overage fees they may have collected from customers. In accordance with a recent directive from the telecom regulatory agency, if an audit reveals that a telco overcharged a client, the telco will be required to reimburse the customer. Additionally, the reimbursement must be processed within three months of obtaining the auditor's slip indicating that the customers were overcharged.

The new regulation, dated September 11, 2023, is a component of the Quality of Service (Code of Practise for Metering and Billing Accuracy) Regulations. The telcos risk a financial penalty of up to Rs 50 lakh each report if they don't submit the report. The telcos must engage the panel of auditors suggested by TRAI to have their accounts audited.

When conducting the audit, the auditor is required to report any instances of overcharging to the service provider in writing as soon as possible, but no later than one week after the observation. The telecom operators must assess the audit observation after receiving it, and if it is found to be accurate, it must act right away to fix the problems with its metering and billing system. Once the overcharged subscribers have been identified, the telco must pay the excess money within three months of the audit observation.

The regulatory body has, however, also made it easier for the carriers. There will be simply one audit for each LSA (licenced service area) per fiscal year as opposed to the current four audits per LSA per fiscal year. However, TRAI has instructed the telcos to get the majority of their tariffs audited instead of the most popular 15 tariffs, which was the previous rule, to guarantee that the interests of the customers are put first.

The new regulations will assist in decreasing the telcos' audit workload by over 75%. Additionally, it will support client protection. The telecoms are free to select which LSAs will be audited in which quarter thanks to TRAI's flexibility. Additionally, TRAI has granted the telcos' request to remove the need that service providers self-evaluate prior to the start of the auditor's assessment.