Is your bank account been debited for a transaction without your consent?

Digital transaction has made everyone’s life a lot easier. However, with the pros of online transaction, there are some unavoidable cons attached to it, which are unfortunate. Now, many of us could relate to the problem of money getting debited without our consent whatsoever. This is not only irritating but also a risk involved in online money transactions. For instance, you wake one fine day and receive an SMS saying that you have spend Rs. 15,000 from your credit card in some foreign stores. How in the earth is that possible? The problem is, such instances of banking frauds are becoming common in India and you should always stay alert.

The rise of cyber frauds has raised concern over the safety and security of online transactions. Seeing this issue, the Reserve Bank of India (RBI) released specific rules in July this year, which makes online transactions for customers safe and secure by all means. RBI came up with a notification, Customer Protection – Limited Liability of customers in unauthorized online banking transactions. The notification says that now banks have to prove that the fraud has taken place or not, nevertheless, customers should make sure to inform the bank immediately in case of any frauds to avoid getting penalized.

Responsibility of Banks

Reserve Bank of India (RBI) in its notification clearly mentions that the systems and processes in banks should be designed with layers of protection to make customers feel safe and secure while they proceed to do online transactions. It is mandatory for banks to get customers registered for SMS and e-Mail alerts. RBI has specifically told banks to not offer net banking facilities other than ATM cash withdrawals to customers who fail to provide their mobile numbers. 

Now, banks also have to communicate to customers about informing them whenever an unauthorized online transaction has taken place. If customers delay in informing banks about such fraud transactions, the higher price they will have to pay.

Customer responsibilities

Zero liability of a customer

A customer is not responsible and accountable to pay any amount if the fraud happens due to carelessness from bank’s end. In cases where there is a malfunction at the backend of the bank or bank employees share account holders details, customers will be not all liable to pay even a penny and the respective bank will have to bear the responsibility. Now, RBI also states that in cases of third party infringement by scammers, fraudsters, hackers and cyber criminals, where neither the bank nor the customer is responsible, and if the customer informs the bank within three working days about the fraud, here also, the bank will have to pay the amount.

 Therefore, to stay protected, make sure to register for SMS and e-mail alerts to stay informed about all the ongoing transactions. Second, do report to the concerned bank as soon as you get the SMS saying that some amount has been debited from your account. The longer you take to inform the bank, the liability will keep on increasing.

Limited liability of a customer

If the unjust debit or fraud has been done from your end, then the bank will not be responsible, and you solely will have to bear the pain. This could happen when your become careless and pass your ATM pin or OTP number without knowing the consequences. However, even if your card is debited due to your utter negligence, you can inform the bank before 7 working days (and after 3 days) before receiving the debit message; the RBI notification says that the transaction liability of the customers will be limited to the transaction value.

Time duration for reversal

In case of unauthorized online transactions where customers money get debited, banks have to credit the respective amount to their accounts within ten working days from the date of complaint registered by the customer. Banks should also ensure that customers should not suffer any loss of interest whatsoever. Banks have to resolve the issue within 90 days from the date of complaint being registered by the customer.

How to Report instantly

The RBI notification has made it clear to banks to provide 24/7 customer support to customers through channels like SMS, email and IVR for reporting unauthorized online transactions. Now, banks are coming up with "instantly respond by "Reply”  to the SMS and email alerts to allow customers report their complaint instantly without bearing the pain of searching a web-page or visiting  a branch to make a complain.

What should you do?

The need of the hour is to stay alert, careful and fully aware while doing online transactions. Since, you can’t avoid the scams, it is better you start acting smart in such cases. Make sure to keep your personal account details private and don’t share your pin or OTP with anyone, not even in passing.

Stay safe, stay secure!

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