Kochi: In a major step to protect customers from financial losses through online frauds, the Reserve Bank of India has come with new steps which helps customers to report security breaches.
RBI has asked customers to inform their bank of unauthorized transactions or of online frauds within 3 days of it taking place. The lost amount will be credited back to the customer's account within 10 days of working days from the date of the notification by the customer.
RBI's new concept of 'zero liability and 'limited liability' makes electronic payments safer for bank customers.
If the fraudulent transaction is reported within four to seven working days, a customer's maximum liability will be up to 25,000, depending on type of account. If fraud is reported after seven working days, the customer's liability will be according to bank's policy. If it's lost due to negligence of the customer, like sharing one's password, the customer will bear the entire loss until he reports the unauthorized transaction to the bank.
If the unauthorized transaction still continues after customer reporting, the RBI has instructed the banks to take full responsibility over it. The transactions include internet banking and mobile banking as well as ATM and point-of-sales transactions.
Such an initiative was taken in accordance with the stoppage of older notes where it has become a scenario for online frauds to act widespread. Though the RBI guidelines is in the interest of customers, it is equally important for customers to remain vigilant and report unauthorized transactions immediately to the bank by the fastest mode and take acknowledgment of the same.
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