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What should customers do in case of fraudulent transactions in bank account?
Posted on: 07/Jul/2017 3:51:54 PM
When there is a suspicious transaction in our bank account, most of the times, we get perplexed and wonder what step to take.
About these unrecognized transactions, there are a number of concerns raised by people. To all these, the Reserve Bank of India has given a few guidelines for ensuring safety of e-banking transactions to reduce fraudulence.
What are e-transactions? It includes internet banking and mobile banking, ATM and point of sale transactions. Below are the steps to take when you observe any sort of phishing activity with your bank account.
In case of illegal transactions where it includes contributory fraud and negligence or deficiency by the bank, the customer will be zero liable regardless of whether you inform the bank about it or not.
When in case a third party has breached your account and the fault neither falls on you nor your bank, you ought to intimate the bank within just 3 working days about the unauthorized transactions. In such case, yet again, you will be zero liable.
When the fraudulence is neither due to you or your bank, and you promptly report to your bank within 4 to 7 working days, the maximum amount you will be liable to will be Rs 5000 to Rs 25,000. This depends on the total credit card limit you have and the account type.
When you take beyond 7 days to complain about the fraudulence, you can determine the liability depending on the bank’s Board approved policy. Banks will provide you these policy details at the time of account opening. In case of wider dissemination, banks will also display the approved policy. Existing customers may also get notified about the bank’s policy.
When you are negligent and share payment details with untrustworthy individuals, and there arises any unrecognized transaction due to your negligence, you will be liable to bear the complete loss until you intimate the bank about the same. After notifying with the bank, your bank shall further borne the loss.
The big question now is what will happen after intimating the bank about the transaction.
Once you notify the bank about such unauthorized transaction, the bank shall credit the amount to your account within 10 working days calculated from the date of notification. If it has happened due to your negligence, the bank will still consider to waive off your liability towards such unauthorized banking.
How will my liability get proved?
The responsibility of proving customer liability with unauthorized e-transactions will depend on the bank.
If the liability is mine, how will I get the details of approved policy of bank’s board?
On the bank website, there will be details of grievance handling or escalation procedure put up by the bank itself. For existing customers, these details shall be notified by the bank itself. When a new account is opened, you will also be notified about it.
