The customer must not reveal/share payment credentials with any third party. If a customer does this then the customer’s liability will increase because of his or her negligent actions. It is the bank’s responsibility to prove that the customer is liable (to whatever degree) in case of unauthorised electronic banking transactions. At their discretion Banks may also decide to waive off any customer liability in case of unauthorised electronic banking transactions. They can do this even in cases of customer negligence.
The customer will incur zero liability when:
- There is an unauthorized transaction due to contributory fraud or negligent behaviour or deficiency in the bank’s services. If you don’t report the unauthorized transaction to the bank, it does not matter because the zero liability occurs whether or not you report it.
- There is a breach but it is not with the customer or bank, but somewhere else in the system. In this case, you should notify the bank within three working days of receiving communication about the unauthorized transaction.
The customer will incur limited liability if there is a delay of four to seven working days after receiving the communication from the bank about the unauthorized transaction, in such a situation the per transaction liability of the customer will be limited to the transaction value or the amount mentioned in this Table below, whichever is lower.
Maximum Liability of Customer
|Type of Account||Maximum Liability|
|Basic Savings Deposit Account||Rs. 5,000/-|
|All other Savings Bank Accounts, Pre-paid Payment Instruments and Gift Cards, Current/Cash Credit/Overdraft Accounts of Micro, Small and Medium Enterprises, Current Accounts/Cash Credit/Overdraft Accounts of Individuals with annual average balance (during 365 days preceding the incidence of fraud)/limit up to Rs.25 lakh, Credit cards with limit up to Rs.5 lakh||Rs. 10,000/-|
|All other Current/ Cash Credit/ Overdraft Accounts, Credit cards with limit above Rs.5 lakh||Rs. 25,000/-|