New Delhi, July 7: After demonetization, many in India turned to electronic banking. However, even as the idea of a cashless economy is promoted, many still have doubts about the use of electronic banking for fear of fraud and hacking. To allay those fears, the Reserve Bank of India (RBI) on Thursday released a list of new rules with standards to limit the liability of customers in online banking fraud. The RBI also notified all banks that the amount involved in the unauthorized electronic transaction will be credited to the account holder within 10 business days.Also Read – RBI Imposes Rs 1 Crore Penalty On State Of India For Non-Compliance
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- There will be “zero customer liability” in the event of a third party default where the breach does not “belong to the bank or the customer but resides elsewhere in the system.” But the customer must notify the unauthorized transaction within three working days and the Bank will credit the amount within ten days.
- If the customer reported an unauthorized transaction within four to seven business days, the customer’s maximum liability will be Rs. 5,000 to Rs. 25,000, depending on the type of accounts and the credit card limit.
- In any fraud, electronic banking transactions include internet banking and mobile banking, as well as ATMs, reported after seven business days. The responsibility of the customer will depend on the policy of the bank.
- RBI asked banks to clarify customer rights and obligations regarding liability for unauthorized transactions in specified scenarios.
- Banks ensure that the resolution of a customer complaint does not exceed 90 days from the date of receipt of the complaint and that the customer is compensated in accordance with the provisions.
- RBI also authorizes the bank that in any case of debit card / bank account the customer does not incur any loss of interest, and in case of credit card the customer does not bear any additional interest charge
- To stop fraud in electronic banking transactions, banks will also provide SMS alerts and email alerts to each of their customers.
- In such SMS alert and email alert, the customer will get the option “Reply” so that the bank is instantly informed of fraudulent transactions.
- RBI also told all banks that they should provide a direct link on their website home page for customers so that they can easily file complaints.
- According to the RBI guideline, banks must provide a direct link on their website home page to file complaints.
The RBI said in its notification that “with the increased push on financial inclusion and customer protection and given the recent increase in customer complaints about unauthorized transactions resulting in debits to their accounts / cards, criteria for determining the customer’s liability in these circumstances were examined. Also Read – Fuel Prices Rise For Day 6: Gasoline Crosses Rs 110, Diesel Passes Rs 100. Check the price in your city