Customers have zero to limited liability in unauthorised transactions: RBI

In the absence of deterrents, many banks are not adhering to guidelines

In its annual report for 2017-18 released on Wednesday, the Reserve Bank of India reiterated the framework on limiting customers’ liability in unauthorised electronic banking transactions. The norms include ‘zero liability’ and ‘limited liability’ for customers. A customer need not bear any loss if the deficiency is on the part of the bank, and in cases where the fault lies neither with the bank nor with the customer but lies elsewhere in the system. For this, the customer needs to notify the bank within three working days of receiving the communication about the unauthorised transaction.

In cases where the fault lies