New Delhi: The Reserve Bank of India (RBI) has introduced the concept of ‘zero liability’ and ‘limited liability’ for bank customers to make electronic payments safer for consumers.
The central bank has also made it mandatory for banks to register all customers for text message alerts and permit reporting of unauthorized transactions through a reply to the alert message.
The RBI has now come out with final guidelines and sought to make rules stricter for banks than originally envisaged.
Under the new directive issued on Thursday, the onus has been placed on banks to link mobile numbers with bank accounts. “With the increased thrust of financial inclusion and customer protection and considering the recent surge in customer grievances relating to unauthorized transactions, the customer liability in these circumstances has been reviewed,” said the RBI.
The central bank’s circular covers online transactions as well as face-to-face transactions in stores using electronic payments.