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Know what to do if ATM fraud or your money stolen from your account!

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ATM or debit card has become the lifeline of almost every citizen. Every bank is issuing the card for its account holder. And the way government is shaping up the economy reducing the use of liquid money and increasing the usage of plastic money it will become obvious for every citizen to have a card. So the cardholder is more careful using his/her card and should increase the maximum security of the card. But what if by any chance your card stolen and you’re seeing that someone is syphoning money from your account! Will your bank will take the liability. To know more let’s continue the reading.

With the advanced technology, the frauds are advancing. Many people do net banking this is another reason that the customer should learn what to do if this kind of circumstances comes by any chance.

The first and foremost thing anyone will do after a bank fraud is contacting the bank and ask for the refund, but most of the time bank will not agree with the story. Following are the ways the bank, as well as the customers, are liable in case of unauthorized transactions from their account.

Zero liability:

Under certain circumstances, the customer will be enlisted to zero liability basically when the unauthorized transaction occurred. Those conditions include contributory fraud or negligence or deficiency on the part of the bank for notifying the customer about the transaction.

Customers will still be liable for the refund if the customer notifies the bank within three working days of receiving the communication from the bank regarding the unauthorised transaction and also if the third-party breach occurs, that means that when neither bank nor the customer is responsible for it, but the problem lies somewhere else in the system.


Limited liability:

In the following two cases a customer has limited liability for these unauthorised transactions:

-The first case is the negligence by a customer, say someone has shared the payment credentials, the customer will bear the entire loss until he reports the unauthorised transaction to the bank. Any loss occurring after the reporting of the unauthorised transaction shall be borne by the bank.

-In cases with unauthorised electronic banking transaction lies neither with the bank nor with the customer, but lies elsewhere in the system. In the case of delay on the part of the customer in notifying the bank, the per transaction liability shall be limited to the transaction value mentioned on the website of RBI, whichever is lower.

Further, if the delay in reporting is beyond seven working days, the customer liability shall be determined as per the bank’s Board approved the policy. Banks shall provide the details of their policy in regard to customers’ liability.

Banks shall also display their approved policy in public domain for wider dissemination. The existing customers must also be individually informed about the bank’s policy.

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