Debit card data fraud: This is all your bank may do to save your money

Zee Media Bureau

New Delhi:While the banks, whose customer data was breached in September, have stepped up guard- taking preemptive measures for further theft from customers' accounts. However, you as a customer, should also know what the bank would do in case you face monetary loss as the bank's security is breached.

The bank shall ensure full security of the debit card. The security of the debit card shall be the responsibility of the bank and the losses incurred by any party on account of breach of security or failure of the security mechanism shall be borne by the bank, says RBI circular.

Banks shall keep for a sufficient period of time, internal records to enable operations to be traced and errors to be rectified (taking into account the law of limitation for the time barred cases). RBI has also proposed that banks should ensure that a complaint is resolved within 90 days and in case of debit card/bank account the customer does not lose out on interest. In case of credit card, banks should also ensure that the customer does not have to bear any additional burden of interest. 

Each bank shall provide means whereby his customers may at any time of the day or night notify the loss, theft or copying of their payment devices, and on receipt of notification of the loss, theft or copying of the card, the bank shall take all action open to it to stop any further use of the card. 

According to the RBI, on being notified by the customer, the "bank should credit (shadow reversal)" the amount involved in the unauthorised electronic transaction to the customer's account within 10 working days. 

"The burden of proving customer liability in case of unauthorised electronic banking transactions shall lie on the bank," RBI said in the draft. Customers have to show that the transaction was not effected by them and happened without authentication. 

You may not be compensated if you have not registered for SMS or phone alerts, despite being asked by the bank. As per RBI, banks must ask their customers to necessarily register for alerts.

Banks could also request you to change your personal identification number (PIN) as a precaution, which you must abide by. As per reports, SBI in September, asked its customers to change their PIN, but only 7 percent abided by the request. 

You will be issued a new card by your bank at no cost, and you can generate the PIN through SMS/IVRS/internet banking online or on phone, or request for home delivery by post.