In today’s era, the use of digital payments and credit cards is increasing rapidly. But along with this, cases of online fraud are also continuously coming to the fore. In such a situation, giving relief to millions of bank customers, the Reserve Bank of India (RBI) has issued a new rule. Under the new rule, if there is a fraud on a customer’s credit card and he complains about it to the bank, then the bank will have to give temporary credit of the disputed amount within five days.
What is the new rule of RBI?
According to RBI, if a fraudulent electronic banking transaction takes place with a customer’s credit card and the customer informs the bank about it, then the bank will have to give shadow reversal of that amount within five days of receiving the complaint. This means that till the investigation is completed, the customer will not have to bear the burden of the disputed amount and no extra interest will be charged on his credit card outstanding amount. These new rules will come into effect from January 1, 2027.
When will we get zero liability?
RBI has clearly said that if the fraud has happened due to the negligence of the bank or lack of system, then the customer will not bear any responsibility. In such cases the customer will get the full amount refunded, whether he has complained or not. Apart from this, if the fraud has occurred due to a third party and the customer informs the bank within five days of the incident, the customer will still get the benefit of zero liability and the entire amount will be refunded. However, if the customer files a complaint after five days, his liability will be decided as per the bank’s policy.
SMS alert will come on all major transactions
Under the new rules, it will be mandatory for banks to send SMS alerts immediately on every electronic banking transaction of more than Rs 500. Banks can send alerts as per their internal policy for transactions up to Rs 500, but customers will not be charged any fee for this. RBI has also said that banks will have to develop such systems so that customers feel safe and immediate action can be taken in case of fraud.
Compensation will be available even in small fraud cases
The central bank has also made a provision for relief for victims of small value digital frauds. If a customer suffers loss up to Rs 50,000 due to fraud and is found to be the genuine victim, he will be given compensation up to 85 per cent of the loss amount or a maximum of Rs 25,000. The customer will get this facility once in his life.
Also read- RBI made important changes in the norms of Kisan Credit Card, new rules will be applicable from January next year.
