Groww user says money debited but not invested, investing platform credits amount in 'good faith'

Investment platform Groww faced social media ire after a user allegedly claimed the firm deducted money from his account without actually making an investment. 

The user took to social media to allege that the Groww app did not invest his money into a mutual fund scheme and generated a "false folio number".

The user discovered the issue when his sister attempted to redeem the supposed investment. Screenshots of his now-deleted social media post have been circulating among other users on X (Twitter).

In response to the attention, Groww acknowledged the error, explaining that the customer's dashboard mistakenly displayed a folio. 

The company clarified that no actual transaction occurred and no money was deducted from the user's account. Groww credited the claimed amount back to the user's account as a gesture of "good faith". 

They have also the user to provide his bank statement to verify any debit related to the alleged investment.

In their official statement on X, Groww assured users that no transaction took place and that the money was not deducted. They expressed regret for the error and confirmed that the reporting issue has been resolved. The company is in touch with the said user for any additional support he might need.

"We assure everyone that no transaction took place and the customer's money was not deducted from the customer's bank account in the said matter," the statement read.

"To ensure that the investor doesn’t get anxious about the claimed amount, we have credited it to the investor on a good faith basis."

"While newer platforms can offer innovative solutions and competitive pricing, the potential risks associated with less established brokers should be carefully considered. Investors should always conduct thorough research, considering factors such as regulatory status, user reviews, financial health, and the overall reputation of the broker, before making a decision," wrote a securities advisor.