India is on a rise when it comes to digital payments and so are the digital frauds. There is no enough knowledge on the various types of frauds or rather people are not aware about it. Some of the most common frauds include identity theft, phishing, ransomware, etc.
In India last year 3.2 million debit cards were compromised and this is a serious concern which RBI is trying to address. RBI has published a new set of guidelines seeking to limit customer liability in case of unauthorised electronic banking transactions. According to the guidelines, bank customers falling victims of fraudulent or unauthorised electronic transactions will not bear any loss if the transaction is due to a fault in the bank’s security system or a third-party breach and the fraud is reported within 3 days of occurrence. In cases where these prerequisites are met, the amounts involved have to be credited back to the corresponding account by the bank within 10 days. If the customer misses the 3 day window, but reports the transaction within 7 days, a limited liability capped at Rs. 25,000 can be apportioned to the customer. If the 7 day deadline is missed, banks will be required to prove the customer’s liability, determine the amount apportioned to the customer as per board policy, and resolve the matter in no more than 90 days.
RBI is making banks more responsible due to which banks will face more losses if the frauds go up. So Banks should start making efforts to educate people about frauds and also install / build stronger systems to prevent fraud.