New RBI Guidelines: Banks Must Refund Unauthorized Digital Transactions Within 3 Days
The Reserve Bank of India has introduced new guidelines requiring banks to process refunds for unauthorized digital transactions within a fixed timeframe to enhance customer protection.
In a major move to strengthen digital payment security, the Reserve Bank of India has issued updated guidelines for handling unauthorized electronic transactions.
According to the new rules, banks are required to credit the disputed amount to the customer’s account within 3 working days of reporting the fraud, provided there is no negligence from the customer’s side. The policy aims to reduce financial stress on victims of cyber fraud.
The guidelines also mandate banks to provide 24/7 reporting channels, including helplines, mobile apps, and online portals, ensuring customers can quickly report suspicious transactions.
Additionally, customers will have zero liability if they report unauthorized transactions within a specified time frame. Delayed reporting may result in partial liability depending on the case.
Experts believe this move will increase trust in digital banking and encourage more users to adopt online payment systems without fear.
The RBI has also instructed banks to improve awareness campaigns and educate users about safe digital practices.