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So far, under OLD rules, banks used to make Customer liable for all the transaction carried out (Genuine or fraudulent) until the time of reporting of loss of card / fraudulent transaction.
Now (in fact, from 6-July-2017), RBI has circulated NEW RULES. These apply for all card (Debit/ Credit / prepaid), Netbanking, e-Wallets / Payment Bank Account, fund transfer Transactions. Here is the quick summary:
1. Customer MUST be notified of every Transaction via SMS AND ALSO email.
2. Customer liability is ZERO, If there is a security lapse / shortfall or negelgence of the bank system / process, IRRESPECTIVE , whether customer has reported the loss or not.
3. Customer liability is ZERO, if the loss / fraudulent transaction is reported in 3 WORKING days, EXCLUDING the day of receiving Transaction notification / intimation / communication by the bank.
4. If the loss / fraudulent transaction is reported in 4 to 7 working days, MAXIMUM liability of the customer is 10,000 (TEN Thousand only) for most of the cases / Account / card holders (i.e. up to 5 lakhs) and max 25,000 for all other.
Full circular is here:
https://m.rbi.org (dot)in//scripts/notificationuser.aspx?Id=11040&mode=0
(Remember to replace word dot with actual)
That's really a very big relief. Personally I feel so protected now.
PS : please share with your friends and spread the awareness.
