Unauthorised Electronic Banking Transaction- Loss To Consumer Or The Bank?

Unauthorised Electronic Banking Transaction

This year, the Financial Literacy Week by RBI focuses on “Consumer Rights” to educate consumers on their liability for unauthorised electronic banking transaction.

Can you imagine the possibilities of electronic banking transactions? Having the ability to receive or send money whenever and wherever. Buying things online in the quickest way. Or getting your bank related work done in minutes if not seconds. Well yes, it’s all that and more. Electronic banking has given consumers convenience like never before. Saving time and energy of physically getting things done are diminishing by each passing day. But with all that power, also comes a great deal of caution and responsibility.

Do you remember the times you have received a message saying- ‘Do not share your user ID and password with anyone’? Is it safe to say more than once? Definitely. So, what is a banking fraud and how is electronic transaction susceptible to such a cause quite easily sometimes? Let’s say that you got an email from your bank asking for your details for xyz type of update and you enter the site only to realise there is something odd. Or you put in your details on some random site without genuine or easily recognisable credentials? Or the very common act of responding to Spam messages that claim to send you 10 million dollars because someone is really ‘generous’? And most recently, where sites have actually been known to sell your data that you entered trusting that one and only social website?

Fraudulent acts of banking can come from anywhere and anytime. A known term for this is called ‘phishing’ where an organisation or an individual tries to illegally obtain your personal information to do just about anything. So, how do you deal with it? Earlier, a commonly known fact was bearing the loss. Why? Is it because you didn’t know whom to ask for help? What to tell the bank if they question you for sharing details to a third party website? Or you just didn’t get notification soon enough to realise the urgency of notifying an authority? Can be one and can be all.

With the day-by-day shift to digitisation, which acts as a boon to advancing technology meant to simplify processes as well as optimise security; it also brings a need to educate people on safe practices and awareness in case of being victimised by a fraudulent act. Considering the surge on consumer grievances relating to unauthorised transaction resulting in debits to their account / cards, the criteria for determining customer liability in these circumstances have also been reviewed. All said and done, you may now understand your power as a consumer, thanks to RBI’s law on safeguarding consumer rights and their money.

According to the law, RBI makes it clear that the consumer has no liability when an unauthorised transaction happens in case of a fraud or even contributory negligence and/or deficiency on part of the bank. But what if neither the consumer nor bank is at fault? The law says that the consumer will not bear the loss if he/she notifies the bank within 3 days of the fraudulent occurrence. In this case, the bank shall be liable to pay the consumer full amount within 10 days of time.

However, in cases where the fraud is due to consumer’s negligence by sharing payment credentials then the loss till the time he/she reports to the bank shall be borne by the consumer only. Now, here’s a catch! What if the consumer is not!at fault and the bank blames them for sharing their information with a third party that inherently led to an unauthorised transaction? The bank will play dumb to admit their leniency in the matter or even admitting a third-party breach. Fret not, the law by RBI as dated July 2017 clearly states, ‘the burden of proving customer liability in cases of unauthorised electronic banking transactions shall lie on the bank’.

In other words, the bank has to do all the hard part to prove their innocence in the matter and your complete fault. Sounds easy? It is not. The RBI further emphasizes the need for banks’ attention to not only send immediately and without fail, SMS and e-mail alerts, but also ensure that such messages are enabled to carry the customer’s reply too so that a consumer can report any such fraud immediately.

So, to sum it up- as consumers, know your rights and don’t ever share your personal and banking information with other people for your own security. Now that you know, share this blog and let’s unite with RBI to spread the importance of being financially-sound this Financial Literacy Week 2018.

Facebooktwittergoogle_plusredditpinterestlinkedintumblrmail
youtube

86 thoughts on “Unauthorised Electronic Banking Transaction- Loss To Consumer Or The Bank?”

  1. Quest bars cheap fitnesstipsnew1 quest bars cheap 516999410492780544
    quest bars cheap
    Having read this I thought it was very enlightening. I appreciate you spending some time and
    effort to put this informative article together. I once again find myself spending way too much time both reading and leaving comments.
    But so what, it was still worth it! Quest bars cheap fitnesstipsnew1 quest bars cheap 516999410492780544 quest
    bars cheap

  2. Fantastic beat ! I wish to apprentice while you amend your website, how can i subscribe
    for a weblog website? The account aided me a appropriate deal.

    I had been a little bit familiar of this your broadcast offered vibrant clear concept

  3. Please let me know if you’re looking for a article writer for your site.
    You have some really good articles and I think I would be a good asset.
    If you ever want to take some of the load off, I’d really like to write some material for your
    blog in exchange for a link back to mine. Please shoot me an e-mail
    if interested. Many thanks!

  4. Hi, Neat post. There is a problem together with your web site in internet explorer, could test this?
    IE still is the market chief and a huge element of people will pass over your fantastic
    writing because of this problem.

  5. Greetings from Florida! I’m bored to tears at work so I decided to check out your blog on my iphone during
    lunch break. I enjoy the knowledge you present here and can’t wait to take a look when I get home.
    I’m shocked at how fast your blog loaded on my cell phone ..

    I’m not even using WIFI, just 3G .. Anyhow, excellent site!

  6. I’m extremely impressed with your writing skills as well as with the layout on your blog.

    Is this a paid theme or did you customize it yourself?
    Either way keep up the excellent quality writing, it’s
    rare to see a nice blog like this one these days.

  7. Attractive component to content. I just stumbled upon your web site and in accession capital to claim that I get actually loved account
    your blog posts. Any way I’ll be subscribing in your augment and even I fulfillment you get entry to consistently
    quickly.

  8. I travel all around the world for work, and it used to be really lonely. Now I can go onto Tinder and have a date lined up in a new city before I even get out of the airport!

  9. I’m extremely pleased to uncover this site. I wanted to thank you for your
    time just for this fantastic read!! I definitely liked every bit of it and I have you bookmarked
    to look at new stuff on your site.

  10. Hello there! I know this is kinda off topic but I was wondering if you knew where I could
    find a captcha plugin for my comment form? I’m using the same blog platform as yours and I’m
    having difficulty finding one? Thanks a lot!

  11. My spouse and I absolutely love your blog and find the majority of your post’s to be precisely what I’m
    looking for. can you offer guest writers to write content in your case?
    I wouldn’t mind composing a post or elaborating on a lot of the subjects you write about here.
    Again, awesome web site!

  12. Attractive section of content. I just stumbled upon your web
    site and in accession capital to assert that I get actually
    enjoyed account your blog posts. Any way I will be subscribing to your feeds and
    even I achievement you access consistently rapidly.

  13. It’s perfect time to make some plans for the future and it is time to be
    happy. I have read this post and if I could I
    desire to suggest you some interesting things or suggestions.
    Maybe you could write next articles referring to this article.
    I desire to read more things about it!

  14. I blog quite often and I truly thank you for your content.
    Your article has really peaked my interest. I will bookmark
    your site and keep checking for new information about once per week.
    I opted in for your RSS feed too.

Leave a Reply

Your email address will not be published. Required fields are marked *