Bank customers won’t have to bear loss for data breach, fraudulent transactions: RBI
By Team Legistify / 2017-07-09

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The Reserve Bank of India on Thursday said bank customers who are victims of fraudulent or unauthorised electronic transactions will not bear any loss if the transaction is due to a fault in the bank’s security system, or a third-party breach.

However, the zero liability is conditional on the customer reporting the unauthorised transaction due to a third-party fault within three days of receiving the alert from the bank, according to the revised norms on “customer protection—limiting liability of customers in unauthorised electronic banking transactions”.

The draft norms were issued in August 2016.

The RBI has mandated banks to pay the amount involved in a transaction within 10 days of reporting by the customer.

Last year, after a malware injection in the systems of Hitachi Payment Services Pvt Ltd, about 3.2 million debit cards were compromised; similarly, hackers had infected the servers of the Union Bank of India with malware.

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