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Yay! Rs 5000 Will Be The Max Consumer Liability In Case Of Bank Transaction Fraud: RBI

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Rupee transaction fraud Money-001

Amidst rising digital transactions all over the country, the issue of transaction frauds is also cropping up, with the same proportion. And these rising complaints and feedbacks related to such frauds are being noticed.

Deputy Governor of Reserve Bank of India, S Mundra, has announced a series of banking reforms, which will create a more robust ‘safety net’ for the consumers.

Besides, the option of bank portability was also talked, which will allow consumers to change their banks, without changing their bank account numbers.

Let’s talk about revolution in banking sector here…

Rs 5000 Maximum Liability For Consumers In Fraud

S Mundra has suggested that in the wake of rising frauds in digital transactions, a limit must be set which safeguards the consumer, and protects his interests.

In August 2016, a draft was circulated by RBI which put a limit of Rs 5000 as consumer liability in case of any transaction fraud. It wasn’t executed due to ambiguity in guidelines, but now, it seems that RBI will implement the same.

The only condition is that the matter must be reported within 7 days of its occurrence.

And, in case the transaction fraud happened due to system failure from the bank’s end, then there shall be zero liability from the customer. The incident needs to be reported within 3 days though.

Mundra also lashed at those banks which intentionally add unnecessary third party products and charges without the customer’s consent, or by misguiding them,

He said, “Banks have been granted the autonomy to fix fees and charges, but it should not be used to deny services to the common man. We are seeing this worrying trend in some organisations. Imposition of usurious charges will be one of the three main focus areas during the annual supervisory cycle this year,”

Special Check on Fraud Cheques; Assistance for Senior Citizens

RBI will make special checks to curb the issue of fraud and fake cheques, and transactions being carried over. As per Mundra, sometimes the print quality of cheques are so bad that the user is unable to locate authentic cheques.

Besides, senior citizens will now receive a summary of monthly transactions, that they are aware of any fraud transactions.

On the issue of bank portability, he said, “Two years ago, I had mentioned this subject of bank account portability: This is now very much in the realm of possibility thanks to the success of Aadhaar and systems such as IMPS.”

We had reported on the suggestion of bank portability in 2012, which, it seems, would be now finally implemented.

Highlighting the importance of good and honest banking protocols, he said that in case any bank is not delivering services in an efficient manner, the customer will now ‘silently move over to the other bank’.

We hope that the suggestions and plans shared by RBI Deputy Governor are executed, and banking industry witnesses a transformation.

We will keep you updated.

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