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Friday, July 20, 2018

Eight ways electronic transactions have become safer

Security-breaches are common in bank transactions, where customers are vulnerable to transaction theft. However now, bank customers will have zero-liability -- they will no longer be expected to bear the losses for fraudulent, third-party transactions.

By: Express Web Desk | New Delhi | Updated: July 7, 2017 4:30:15 pm
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The narrative of plastic cards and fraudulent monetary practices in India has been a long-standing one. Security-breaches are common, where customers are vulnerable to transaction theft. However now, bank customers will no longer be expected to bear the losses for fraudulent, third-party transactions, particularly if it’s a fault due to a system deficiency or an internal glitch. Here are eight ways the RBI has ensured transaction safety:

  1. RBI sent across a notification that if there was an unauthorised transaction, the customer was entitled to zero liability if he/she reported within the first three working days of learning about the fallacious transaction.
  2. However, if it is reported between the fourth and seventh day, there will be a financial obligation, which would lie anywhere between Rs. 5,000 to Rs. 25,000.
  3. Beyond the 7th day, the customer would be expected to bear losses as deemed fit by the bank’s approved policy.
  4. If, however, the unauthorised transaction took place due to the customer’s own negligence – for instance, he/she shared the PIN number – then the loss will be borne by the customer, until the fraudulent transaction is reported. However, the banks are at the discretion to waive off the liable amount. If there is any occurrence of loss after the transaction has been reported, the proceeding losses will be borne by the bank.
  5. RBI has also notified that it is mandatory for the customers to register for mobile and email alerts.
  6. What happens when the customer has reported fraud? Within the following 10 working days, the bank is expected to credit the amount back to the customer’s account.
  7. In addition to the SMS alerts, the bank are expected to also enable the instant “Reply” to the text and email alerts, where the customers can instantly inform the bank of a fraud if it’s a transaction not made by them. They would no longer have to waste time searching for the bank’s website, contact number or email address.
  8. The bank websites, however, should carry one dedicated, direct link where customers can lodge complaints regarding unauthorised transaction. When the complaint is registered, the customers should receive an immediate acknowledgment from the bank with a corresponding complaint number.

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The RBI has been working towards making the transactions safer and easier for customers. Last year, it had announced that the two-factor authentication required for online transactions would be wavered for payments amounting to Rs. 2,ooo or less. At the same time however, the RBI underscored that banks could put a lower transaction limit as well.

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