The amount involved in the unauthorised electronic transaction will be credited within 10 working days to the account holder.
New Delhi, July 7: After demonetisation, many in India have taken to electronic banking transactions. However, even as the idea of cashless economy is being promoted, many still have doubts over using electronic banking transactions over fears of fraud and hacking. To curb these fears, the Reserve Bank of India (RBI) has come out with a list of new rules on Thursday with norms for limiting customer liability in online banking frauds. The RBI has also notified to all the banks that the amount involved in the unauthorised electronic transaction will be credited to the account holder within 10 working days.
These are the new rules to safeguard customers from unauthorised online transactions:
- There will be “zero liability of a customer” in the case of third party breach where the deficiency lies “neither with the bank nor with the customer but lies elsewhere in the system. But the customer has to inform about unauthorised transaction within three working days and Bank will credit the amount within ten days.
- If customer reported any unauthorised transaction within four to seven working days a customer’s maximum liability will be from Rs. 5,000 to Rs. 25000, depending on the type of accounts and credit card limit.
- In any fraud in the electronic banking transactions include Internet banking and mobile banking, as well as ATM, reported after seven working days. The customer’s liability will depend upon the bank’s policy.
- RBI asked Banks to clear the customer’s rights and obligations about the liability of in case of unauthorised transactions in specified scenarios.
- The banks shall ensure that the resolution of a customer complaint does not exceed 90 days from the date of receipt of the complaint, and the customer is compensated as per provisions.
- RBI also clears to bank that in any case of debit card/bank account, the customer does not suffer loss of interest, and in case of credit card, the customer does not bear any additional burden of interest
- To stop the frauds in electronic banking transactions Banks will also provide SMS alert and email alerts to their every customer.
- In such SMS alert and email alert customer will get “Reply” option so that bank will get to know about fraudulent transactions instantly
- RBI has also said to all the banks that they have to provide a direct link on their website’s homepage to the customers so that they can lodge the complaints easily.
- According to the RBI directive, banks have to provide a direct link on their website’s homepage for lodging the complaints.
The RBI said in its notification that “With the increased thrust on financial inclusion and customer protection and considering the recent surge in customer grievances relating to unauthorised transactions resulting in debits to their accounts/cards, the criteria for determining the customer liability in these circumstances have been reviewed.”
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