Dynamite News Reserve Bank of India vows to make online payment safer
RBI said that customers will not suffer any loss if unauthorised electronic banking transactions are reported within three days and the amount involved will be credited in the accounts concerned within 10-days.
New Delhi: Customers will not suffer any loss if unauthorised electronic banking transactions are reported within three days and the amount involved will be credited in the accounts concerned within 10-days, the Reserve Bank of India said on Thursday.
In case the third party fraud is reported with a delay of four to seven working days, a customer will face liability of up to Rs 25,000.
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However, in cases where the loss is due to negligence by the account holder (such as sharing of payment credentials), the customer will bear the entire loss until the unauthorised transaction is reported to the bank.
Any loss occurring after reporting of the unauthorised transaction will be borne by the bank, RBI said while issuing revised directions on 'Customer Protection Limiting Liability of Customers in Unauthorised Electronic Banking Transactions'.
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RBI said the revised directions are being issued amidst recent surge in customer grievances relating to unauthorised transactions resulting in debits to their accounts/cards.
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There will be "zero liability of a customer" in case of third party breach where the deficiency lies "neither with the bank nor with the customer but lies elsewhere in the system".
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However, the customer will have to notify the bank within three working days of receiving the communication from the bank regarding the unauthorised transaction.
A customer's entitlement to zero liability will also arise where the unauthorised transaction occurs due to "contributory fraud/negligence/deficiency on the part of the bank (irrespective of whether or not the transaction is reported by the customer)", RBI said.