Published On: Fri, Jul 7th, 2017

Reserve Bank Of India Limits Customers’ Liability In Unauthorized Transactions

Reserve Bank of India (RBI) has come up with norms favouring customers who make online transactions. It limited the liability of account holders and directed the banks to credit the amount of electronic transaction carried out in unauthorized way within 10 working days from the date of notification by the customer.

A notification of RBI released on Sunday revealed customer liability has been reviewed following recent surge in customer grievances about unauthorised transactions and said the banks should not wait for the settlement of insurance claim to credit the amount.

Reserve Bank Of India Limits Customers' Liability In Unauthorized Transactions

It added the banks may also waive off any liability caused due to negligence of the customers.

The Reserve Bank added further the banks should make registering for SMS and email alerts mandatory for electronic banking transactions.

The notification further read, “The SMS alerts shall mandatorily be sent to the customers, while email alerts may be sent, wherever registered. The customers must be advised to notify their bank of any unauthorised electronic banking transaction.”

All the banks are also urged complaints should be resolved within 90 days and compensation need to be granted as per provisions.

RBI further continued customers should not bear any additional burden of interest in the case of credit care and in debit card/bank account there should be no loss of interest.

Meanwhile, customers are urged not to delay in reporting to the bank about such unauthorized electronic transaction.

About the Author

- Paul Linus is an eminent online journalist who has been writing news, features and editorials on different websites from across the world for about a decade.

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