Bank customers won't have to bear loss from fraudulent transactions: RBI

The Reserve Bank of India today said that customers will not suffer any loss if unauthorised electronic banking transactions are reported to the bank within three days thus putting the onus of such transactions largely on the banks. 

The amount involved will be credited in the accounts concerned within 10-days. In case the third party fraud is reported with a delay of four to seven working days, a customer will face liability of up to Rs 25,000.

In a notification on its website on 'Customer Protection Limiting Liability of Customers in Unauthorised Electronic



Banking 

Transactions', the apex bank said in cases where the loss is due to negligence by the account holder such as sharing of payment credentials, the customer will bear the entire loss until the unauthorised transaction is reported to the bank. 

Any loss occurring after reporting of the unauthorised transaction will be borne by the bank, RBI said while issuing revised directions.RBI said the revised directions are being issued amidst recent surge in customer grievances relating to unauthorised transactions resulting in debits to their accounts/cards.