RBI Introduces ‘Zero Liability’ & ‘Limited Liability’ For Bank Customers For Any Card Or Online Fraud

The Logical Indian Crew

July 7th, 2017 / 3:13 PM

Courtesy: The Reserve of India | Image Credit: NDTV,  Live Mint

Online and card payments are to become safer as the Reserve Bank of India on 6 July introduced the concept of ‘zero liability’ or ‘limited liability’ for the customers as far as any card or online frauds are concerned.

It is now compulsory for the banks to take full responsibility to register the customers for text message alerts and enable them to report unauthorised transactions through a reply to the warning message.

It was in August 2016 that the idea to limit customer liability was mooted in a draft circular, but it is only now that the RBI has come out with guidelines that aim at making banking rules stricter and more secured. This bulletin covers not just online transactions but also face-to-face transactions using cards.

“With the increased thrust of financial inclusion and customer protection and considering the recent surge in customer grievances relating to unauthorised transactions, the customer liability in these circumstances has been reviewed,” said the RBI.

With the enforcement of this new regulation, customers would be able to report unauthorised transactions on the homepages of the respective banks. Also, one would be able to report fraudulent practices through various mediums like that of phone banking, SMS, email, call centre and interactive voice response.

Customers will have zero liability about a fraudulent practice:

  • If there is any negligence on the part of the bank.
  • If there is a third party breach, without bank involvement, but is reported to the bank within three working days of receiving communication regarding the unauthorised transaction.The customer would be liable if the breach is not reported to the bank within three to four days of the knowledge of the operation.

The maximum liability of the customer in the case of the above two transactions will be Rs 5,000 for a basic savings bank account.

For most other accounts, the maximum liability will amount to Rs 10,000. For credit cards with limits above Rs 5 lakh and for current, cash credit and overdraft accounts of limits above Rs 25 lakh, the maximum liability will be Rs 25,000.


To know more on this, click here.


Contributors

Written by :

Edited by :

Share your thoughts..

Related Stories

23,000 Loan Fraud Cases Of Rs 1 Lakh Crore Reported In Last 5 Years: RBI In RTI Reply

Another Case Of Bank Fraud: Chennai Based Jeweller Cheats Bank Of Rs. 824 Crore

Financial Assets

A Third Of Indian Households Where Head Is Younger Than 35 Don’t Have Any Financial Assets: RBI Report

Mumbai: Man Falls Prey To A Facebook Fraud Gang, Loses Rs 2 Crore Online

RBI Has Not Printed Any Rs 2000 Notes For 5 Months, To Focus On Rs 200 Notes Instead

Online Herbal Seed Fraud

Bengaluru: 9th Victim In Four Months Loses Rs 25 Lakh In Online Herbal Seed Fraud

Latest on The Logical Indian

News

UP: Over 70 Children Die In A Span Of Two Months In A Govt Hospital

My Social Responsibility

Poverty Didn’t Let Him Study, Now He Provides Free Schooling To Children Of Widows, Prisoners & Ailing Parents

News

“BJP Govt Was A Silent Spectator During Gujarat Riots,” Says Assam Text Book; FIR Against Authors & The Publisher

Exclusive

“Don’t Need To Dissociate Myself From My Religion To Be A Gay,” One Of India’s First Gay Rights Activists

News

PM Modi Launches Ayushman Bharat Yojna: Know All About It

News

Dr Kafeel Khan And His Brother Arrested In A Nine-Year-Old Alleged Bank Fraud Case

x

Stories that deserve attention, delivered to your inbox!

Handpicked, newsworthy stories which deserve the attention of a rational generation.