New Delhi, July 7: The Reserve Bank of India has come out with the concept of 'zero liability' and 'limited liability' making Electronic payments safer for bank customers. With the new initiative, customers will not suffer any loss if unauthorised electronic banking transactions are reported within three days and the amount will be credited to the concerned within 10 days.
RBI's circular covers online transactions as well as face-to-face transactions in stores using electronic payments.
Here are the final guidelines sought to make online transaction safe
- A customer will have zero liability in case of third party breach or negligence on the part of the bank. The customer will also not be liable if unauthorised transaction is reported to the bank within three working days.
- In cases loss 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.
- The bank has to credit the amount involved in the unauthorised electronic transaction to the customer's account within 10 working days from the date of such notification by the customer.
- If the fraudulent transaction is reported within four to seven working days, a customer's maximum liability will be from Rs. 5,000 to Rs. 25000 depending on type of account.
- In case of fraud is reported 7 working days, the customer's liability will be according to the bank's policy.
- The transactions include internet banking and mobile banking as well as ATM and point-of-sales transactions.
- The banks have to provide a direct link on their website's home page for filing the complaints.
- The RBI has directed the banks to ask their customers to compulsorily register for SMS and email alerts. Such alerts must have a Reply option for customer response so that they can easily notify banks in case of fraudulent transactions.