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Fraud Liability Framework

Understand your rights and liability under RBI guidelines

You May Have ZERO Liability!

RBI guidelines protect customers from unauthorized electronic banking transactions. The key is to report quickly.

Customer Liability Matrix

Scenario Reporting Time Customer Liability
Bank's negligence / Third-party breach (not customer's fault) Any time ZERO
Neither bank nor customer at fault Within 3 working days ZERO
Neither bank nor customer at fault 4 to 7 working days Limited (Rs 10,000 - 25,000)
Neither bank nor customer at fault After 7 working days As per bank policy
Customer's negligence (shared OTP, PIN, etc.) Any time FULL (Customer bears loss)

Limited Liability Amounts (4-7 Days Reporting)

Basic Savings Account

₹5,000

Maximum liability

Regular Savings/Current Account

₹10,000

Maximum liability

Credit Card / Pre-paid Account

₹25,000

Maximum liability

Key Points to Remember

10-Day Credit Rule

Bank must credit the disputed amount within 10 working days of receiving the complaint, even while investigation is ongoing.

90-Day Investigation

Bank must complete investigation within 90 days. If customer is found liable, the credited amount may be reversed.

SMS Alert Mandatory

Banks must send SMS alerts for all electronic transactions. Register your mobile number with the bank.

Burden of Proof on Bank

The bank must prove that the customer was negligent. The customer does not need to prove innocence.

Report Fraud Immediately

The sooner you report, the less your liability. Don't delay!