|The Reserve Bank of India has placed on its website the Draft Circular on “Customer Protection – Limiting Liability of Customers in Unauthorised Electronic Banking Transactions”, for feedback. Suggestions/comments, if any, on the Draft Circular may be sent by post to the Chief General Manager, Department of Banking Regulation, Reserve Bank of India, Central Office, 12th Floor, Shahid Bhagat Singh Marg, Mumbai-400 001, or Please click here to send email on or before August 31, 2016.
The highlights of the draft circular are:
1) Where customer’s own involvement is established, customer will be liable.
2) Customer will not be liable:
3) Where customer’s own involvement is not clearly established, customer liability will be limited to a maximum of ₹ 5000/- if he reports within 4 to 7 working days.
4) If customer reports beyond 7 working days, customer liability will be determined based on bank’s Board approved policy.
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.
Press Release : 2016-2017/388