RBI Revises Guidelines To Protect Victims Of Digital Fraud
By Team Legistify / 2017-07-12

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Reserve Bank of India (RBI), on Thursday, revised its norms which guide the protection of customers who fall victim to fraudulent electronic transactions. In cases where fraudulent transaction take place due to negligence on the part of the bank, customers will face zero liability, said the regulator.

Customers would also not bear the cost of fraudulent transactions where information has been leaked due to a breach on a third party network, provided they inform the bank about the transaction within three days.

The new rules come at a time when the government is pushing customers towards digital transactions in the hope of bringing down the use of cash. While digital transactions have picked up, concerns around security of some of these payment methods remain, making it important for the regulator to have clear rules governing liabilities in the case of fraudulent transactions.

Limited Liability

In cases where customers have informed the bank between four to seven days after a fraudulent transaction due to third party negligence, customers would have to bear limited liability.

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