Victim of card fraud? RBI's new rules ensure you won't bear the loss; follow these steps


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In a move to make online transaction safer, the Reserve Bank of India (RBI) has introduced the concept of ‘zero liability’ and ‘limited liability’ for bank customers against any fraud.
According to an RBI notification, customers will not suffer any loss if unauthorised electronic banking transactions are reported within three working days. Also, the amount involved will be credited in the accounts concerned within 10 days.

Let’s take a look at the new rules that will help in safer e-transaction:

1.RBI has made it mandatory for banks to register all customers for text message alerts and permit reporting of unauthorised transactions through a reply to the alert message.

2.Under the new directive, the onus has been placed on banks to link mobile numbers with bank accounts. The RBI circular covers online transactions as well as face-to-face transactions in stores using electronic payments.

3.Banks have been asked to enable replies to text messages containing transaction alerts and allow reporting of unauthorized transactions on their homepage.

4.Fraud can be reported through other channels, including phone banking, sms, email, call centre and interactive voice response.

5.Banks can disallow electronic transactions (other than ATM withdrawals) to customers who do not share their mobile number.

6.A customer will have zero liability in respect of a fraudulent transaction if there is contributory fraud or negligence on the part of the bank.

7.The customer will also not be liable if there is a third-party breach, without bank involvement, which is reported to the bank within three working days of receiving communication regarding the unauthorized transaction.

8.However, in cases where the loss is due to negligence of the customer, he/she shall have to bear the entire loss until he/she reports the unauthorized transaction to the bank.

9.In case of loss caused by a third party, the customer will be liable for the transaction value if he fails to report the fraudulent transaction within 4-7 days of receiving the alert from the bank

10.In case the fraud is reported within 4-7 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.
@Dhillon @kit walker