Contact
Your Financial Adviser Money Making MC
12Th
Aug 2016
 |
| RBI (The Total Investment & Insurance Solutions) |
The
Reserve Bank of India (RBI) has proposed that the customer will have
no or zero liability in case of fraud being committed because of a
bank's negligence or by a third party. In addition, where the
customer’s own involvement is not clearly established, customer
liability will be limited to a maximum of Rs5,000 if it is reported
within four to seven working days, the draft circular says.The
Total Investment & Insurance Solutions
However,
where customer's own involvement is established, customer will be
liable, the draft circular on 'Customer Protection - Limiting
Liability of Customers in Unauthorised Electronic Banking
Transactions' issued by the central bank says.The Total Investment
& Insurance Solutions
The
recent surge in customer grievances relating to unauthorised
electronic banking transactions resulting in debits to their accounts
and cards, has necessitated a review of the criteria for determining
the customer liability in these circumstances, RBI said in a release.
"If
customer reports beyond seven working days, customer liability will
be determined based on bank's Board approved policy," said the
draft, on which the RBI has sought feedback till 31 August 2016.
On
being notified by the customer, the draft said the "bank should
credit (shadow reversal)" the amount involved in the
unauthorised electronic transaction to the customer's account within
10 working days.
"The
burden of proving customer liability in case of unauthorised
electronic banking transactions shall lie on the bank," the RBI
proposed.
It
is also proposed that banks should ensure that a complaint is
resolved within 90 days and in case of debit card or bank account the
customer does not lose out on interest.
Banks
should also ensure that in case of credit card the customer does not
bear any additional burden of interest.
The
RBI said the recent surge in customer grievances relating to
unauthorised electronic banking transactions resulting in debits to
their accounts/cards, has necessitated a review of the criteria for
determining the customer liability in these circumstances.
"Banks
must ask their customers to mandatorily register for alerts for
electronic banking transactions. The alerts shall be sent to the
customers through different channels (email or SMS) offered by the
banks," it proposed.The Total Investment & Insurance
Solutions
Suggestions
or comments, on the Draft Circular can be sent by post to...
Chief
General Manager,
Department
of Banking Regulation,
Reserve
Bank of India,
Central
Office, 12th Floor,
Shahid
Bhagat Singh Marg,
Mumbai-400
001, or
Please
contact through email to liabilityebt@rbi.org.in on
or before 31 August 2016.The
Total Investment & Insurance Solutions
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