This means banks will have to make good the losses suffered by customers. In cases where the victim notifies the fraud between four and seven days after coming to know about it, the liability will be capped at Rs 5,000. The RBI said that if a bank employee is responsible for the fraud, the customer must get his money back irrespective of whether it is reported in time or not.
The three-day time limit for reporting a fraud will start from the day the customer receives an intimation about the transaction from the bank. This can be either by way or an SMS, e-mail or statement. This directive puts the onus on the bank to notify the customer of the transaction as soon as possible.
The proposed rules will apply to all electronic transactions, including payments made remotely using net banking or cards and payments made in shops using cards or mobile wallets.
If a customer has shared his password or other payment credentials, he will be responsible for any transaction that takes place until the time he informs the bank of his indiscretion. Once he informs the bank, the bank will be liable for any loss that takes place subsequently.
To make it possible for the customer to report fraud cases on time, banks have been asked to provide multiple option including website, SMS, interactive voice response systems, a dedicated toll-free helpline and a reporting option at home branch. Banks have also been asked to put in place systems acknowledging receipt of the complaint.
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