Digital payments and credit card transactions have become a part of daily life. But at the same time, online fraud cases are also increasing.
To protect bank customers, the Reserve Bank of India (RBI) has introduced new rules that will make it easier for victims of credit card fraud to get relief.
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Bank Must Give Temporary Credit Within 5 Days
Under the new RBI rules, if someone reports a fraudulent transaction made using their credit card, the bank must provide a temporary (provisional) credit for the disputed amount within five days.
This temporary adjustment, known as a “shadow reversal,” ensures that customers do not have to pay the disputed amount while the bank investigates the case.
During this period, no extra interest will be charged on the disputed amount.
These new rules will come into effect from January 1, 2027.
When Will Customers Get Zero Liability?
The RBI has clarified that customers will not have to bear any loss if the fraud happened because of the bank’s negligence or a system failure.
In such cases, the customer will receive a full refund, even if the complaint is filed later.
If the fraud is caused by a third party, customers will also get zero liability, provided they report the incident to the bank within five days.
However, if the complaint is filed after five days, the customer’s liability will be decided according to the bank’s policy.
SMS Alerts for Transactions Above ₹500
The RBI has also made transaction alerts more strict. Banks will now have to send an instant SMS alert for every electronic transaction above ₹500.
For transactions of ₹500 or less, banks can decide their own alert policy. However, customers cannot be charged any fee for receiving these alerts.
The RBI has also asked banks to strengthen their security systems and take quick action whenever a fraud is reported.
Compensation Even for Small Fraud Cases
The new rules also provide relief in small-value fraud cases. If a customer loses up to ₹50,000 due to digital fraud and is found to be a genuine victim, they can receive compensation of 85% of the loss, up to a maximum of ₹25,000.