Current Affairs · RBI Guidelines on Customer Liability in Electronic Transactions
Alpha Bank received a customer complaint from Ms. E regarding an unauthorized fund transfer of Rupees 5 lakh from her Savings Bank Account through Internet Banking. Ms. E reported the fraud within two days of receiving the alert. The investigation revealed that the fraud occurred due to a third-party breach in the bank's system, and there was no negligence on the part of Ms. E. Based on the Reserve Bank of India (RBI) guidelines on Limiting Liability of Customers in Unauthorized Electronic Banking Transactions, what is the maximum timeline for the bank to provisionally credit the amount to Ms. E's account, and what is her final liability?
- 1The bank must recredit the amount within 90 calendar days of the notification, and the bank is liable for the full loss, including any loss of interest on the amount.
- 2The bank must recredit the amount within 10 working days of the notification by the customer. The liability is zero for the customer, and the bank is liable for the full Rupees 5 lakh.✓
- 3The bank must recredit the amount within 10 working days of the notification by the customer. The bank is liable for the full loss, but the customer must bear a maximum liability of Rupees 10,000.
- 4The bank must recredit the amount within 5 working days of the reporting date. The bank is liable for the full loss because the loss was due to a third-party breach and there was no customer negligence.
Correct answer
The bank must recredit the amount within 10 working days of the notification by the customer. The liability is zero for the customer, and the bank is liable for the full Rupees 5 lakh.
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