Is Customer Liable for Loss due to Banks Negligence?

So far, under OLD rules, banks used to make Customer liable for all the transaction carried out (Genuine or fraudulent) until the time of reporting of loss of card / fraudulent transaction.

Now (in fact, from 6-July-2017), RBI has circulated NEW RULES. These apply for all card (Debit/ Credit / prepaid), Netbanking,  e-Wallets / Payment Bank Account, fund transfer Transactions. Here is the quick summary:

1. Customer MUST be notified of every Transaction via SMS AND ALSO email.

2. Customer liability is ZERO, If there is a security lapse / shortfall or negelgence of the bank system / process, IRRESPECTIVE , whether customer has reported the loss or not.

3. Customer liability is ZERO, if the loss / fraudulent transaction is reported in 3 WORKING days, EXCLUDING the day of receiving Transaction notification / intimation / communication by the bank.

4. If the loss / fraudulent transaction is reported in 4 to 7 working days, MAXIMUM liability of the customer is 10,000 (TEN Thousand only) for most of the cases / Account / card holders (i.e. up to 5 lakhs) and max 25,000 for all other.

Full circular is here:

 https://m.rbi.org (dot)in//scripts/notificationuser.aspx?Id=11040&mode=0

(Remember to replace word dot with actual)

That's really a very big relief. Personally I feel so protected now.

PS : please share with your friends and spread the awareness.