Credit card fraud: Why RBI has done well to put onus on bank customers

Credit card fraud: Why RBI has done well to put onus on bank customers. Besides the complexity of online transactions vis-a-vis cash, one of the hurdles for online payments has been concerns over security.The rising number of hack attempts on banks has made people sceptical. While the government has tried to solve the first—it has launched three iterations of its payment service—the new guidelines released by RBI will probably address the second. The central bank, on Monday, notified limited liability rules in case of card fraud. RBI has highlighted that the customer will only be liable in case of her own fault, while in other cases, she would bear zero liability. Banks, if informed within three days of a third-party breach, would have to give the customer the entire amount in her account. Surely charging banks for this can’t be an option? The rules also leave a vacuum in terms of security of third-party e-wallets. What the central bank can do is make OTP mandatory for all transactions. Aadhaar can also be an answer to the bank’s woes.
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RBI has highlighted that the customer will only be liable in case of her own fault, while in other cases, she would bear zero liability. (Reuters)

Besides the complexity of online transactions vis-a-vis cash, one of the hurdles for online payments has been concerns over security.The rising number of hack attempts on banks has made people sceptical. While the government has tried to solve the first—it has launched three iterations of its payment service—the new guidelines released by RBI will probably address the second. The central bank, on Monday, notified limited liability rules in case of card fraud. RBI has highlighted that the customer will only be liable in case of her own fault, while in other cases, she would bear zero liability. Banks, if informed within three days of…

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