Reserve Bank of India (RBI) has made big changes in regulations regarding fraudulent transactions by reducing liability on customers. It said that customers must report unauthorized transactions due to a third party fault within 3 days of receiving an alert from the bank.
If a customer reports an unauthorised transaction within 3 days, the amount will be credited back within 10 days. RBI further said that customers will not bear any loss if the transaction is due to a fault in the bank’s security system or a third party breach, the RBI said in the circular.
However, if the fraud is reported with a delay of 4–7 days, the customer will face a liability of up to twenty five thusand. If the loss is due to negligence (like sharing payment details) customer will bear full loss until the fraud is reported. Bank will bear loss occurring after reporting, RBI statement added.
RBI added that banks must ask their customers to mandatorily register for SMS alerts and wherever available register for e-mail alerts, for electronic banking transactions. The bank websites should carry one dedicated, direct link where customers can lodge complaints regarding unauthorised transaction.