New guidelines for online frauds
Now this is really getting difficult which way to adopt for payments, as we’re listening a lot about online frauds. Finally government has announced new guidelines for online frauds or anything with your credit or debit cards. Now as per the new guidelines by RBI, electronic payments will become safe for users. Reserve bank of India has already launched the theory of “Zero Liability”, that’s so amazing. Have a look at few guidelines so that you’ll get to know in details:
- Now it is mandatory to connect user’s’ bank account with text message alerts.
- Now customers will have zero liability where the bank or bank staffs are responsible for any of the frauds.
- There are limited liabilities if you’re reporting about fraud to your bank within 3 days about 3rd party violation.
RBI has recently announced that new guidelines that are really strict for the banks to take protect the account holder’s information.
There are few challenges as well because it’s really hard to understand the concept of zero liability. Because there is no such clarity on that how this will apply when a user is sharing its password.
Just in case the loss is due to carelessness of the customer like sharing password and such things. In that case user will bear the entire loss till the time one isn’t reporting about the unauthorized transaction. In case of third party fraud, user will be liable for entire amount if that isn’t reporting within 4-7 days. Bank will send user the alert about the transaction, if accountholder isn’t reporting then it’s not the responsibility of bank.
Maximum liability of the user in that case will be Rs 5,000 for basic saving account. And for other account it will be around Rs 10,000 or so. For credit cards it will be around Rs 25,000 with the cardholders with the limit of above Rs 5 Lakh.