In a welcome development, the Reserve Bank of India (RBI) has issued new rules to protect bank customers. This is a significant development and would be very beneficial for bank customers since cases of cheating and fraud have increased significantly in recent times. Just this week, more than 200 people in Bengaluru had lost more than Rs 10 lakh on account of skimming of their ATM/debit card information. As per the new rules, bank customers would be completely free from any losses if they report the unauthorized transaction within 3 working days. In case such transactions are reported within seven working days, the customer’s liability would be limited to Rs 25,000.
These new rules will be applicable in case of third party breach, wherein the responsibility is neither with the bank nor the customer. However, banks will have the freedom to determine the overall liability of the customer in case the transactions are reported beyond seven days. “The systems and procedures in banks must be designed to make customers feel safe about carrying out electronic banking transactions,” the RBI notification said. However, in cases where the customer has shared his payment credential with anyone else, then they will have to bear the entire loss.