Page 33 - Banking Finance April 2018

ARTICLE

Customers must be advised to notify their bank about and there is a delay(of four to seven working days after
unauthorized electronic banking transactions at the earliest receiving the communication from the bank on the part
after the occurrence of such transactions and informed that of the customer in notifying the bank of such a
the longer the time taken to notify the bank higher will be transaction value or the amount mentioned as below,
the risk of loss to the bank/customer. whichever is lower

Bank must provide customers 24*7 accesses through Maximum liability of a customer
multiple channels like website, phone banking, SMS, e-mail,
IVR, toll free helpline for reporting unauthorized Type of Account Maximum
transactions. The loss/fraud reporting system of the bank liability
should also ensure immediate response is sent to the in RS.
customer acknowledging the complaint along with the BSBD Accounts 5000
registered complaint number with time and date. This is All other SB accounts 10000
important in determining the extent of a customer's liability.
Pre paid payment Instruments and Gift 10000
Cards
The Banks may not offer facility of electronic transactions,
other than cash withdrawals to customers who do not Current /cash Credit/Overdraft accounts 10000
of MSMEs
provide mobile numbers to the bank. On receipt of report
of unauthorized transactions from the customer, banks must Current accounts/Cash Credit/Overdraft 10000
take immediate steps to prevent unauthorized transactions Accounts of individuals with annual average
in the account. balance limit up to Rs.25lakh
Credit card with limit up to Rs.5lakh 10000
Guidelines about limited liability of a All other current /Cash Credit /Overdraft 25000

customer: Accounts
Credit cards with limit above Rs.5lakh 25000
A customer has entitlement to zero liability for the
unauthorized transaction in following circumstances
If delay in reporting is beyond seven working days, the
a. Contributory fraud negligence/ deficiency on the part
customer liability shall be determined as per the bank's
of the bank
Board approved policy. Bank shall provide details of policy
b. Third party breach where the deficiency lies neither with
in regard to customer's liability at the time of opening of
the bank nor with the customer but lies elsewhere in
the account. Overall liability of the customer in third party
the system and the customer notifies the bank within
breaches,where the deficiency lies neither with the bank nor
three working days of receiving the communication with the customer but lies elsewhere in the system is as
from the bank regarding the unauthorized transaction.
follows
Limited liability of a customer: Time taken to report the Customer's liability
fraudulent transaction from in Rs.
A customer is liable for the loss occurring due to
the date of receiving
unauthorized transactions in the following cases: the communication
a. When the loss is due to negligence by a customer, such
as sharing of credentials, the customer will bear the Within 3 working days Zero liability
entire loss until he reports the unauthorized transaction Within 4 to 7 working days The transaction value or
to the bank. Any loss occurring after the reporting of the amount mentioned
unauthorized transaction shall be borne by the bank. in above table
Beyond 7 working days As per bank's Board
b. If unauthorized transactions lies neither with the bank
approval policy
now with the customer, but lies elsewhere in the system

BANKING FINANCE | APRIL | 2018 | 33