The Reserve Bank of India has said that customers will have zero liability if a fraudulent or unauthorised transaction takes place, in case of negligence or deficiency from the bank, or a third party breach takes place and the customer notifies the bank in three working days, after receiving communication from the bank of the unauthorised transaction. However, that limited liability of the customer increases as time passes. For example, in case of Mobile Wallets or Credit Cards with a limit of up to Rs 5 lakh, the maximum liability will be of Rs 10,000 if the transaction is reported between 4-7 working days. More details on liability. What's also very significant here is that the RBI has recommended that Banks may deny customers the ability to transact digitally, if customers decline to link mobile numbers with their bank accounts. The change: determining the liability of customers What is important here is that the RBI has emphasised that the liability for unauthorised transactions lies with the banks, and only a limited liability may be passed on to customers. The burden of proving customer liability in case of unauthorised electronic banking transactions shall also lie with the bank. Previously, the cardholder had to bear the loss sustained "up to the time of notification to the bank of any loss, theft or copying of the card but only up to a certain limit (of fixed amount or a percentage of the transaction agreed upon in advance between the cardholder and the bank), except where the cardholder acted fraudulently, knowingly…
