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The use of credit cards has become very common in today’s digital age. But losing a credit card and then having a transaction worth millions of rupees by a stranger can be a big worry for anyone. In such circumstances, the biggest question that arises in the customer’s mind is who will pay the expenses incurred by this stolen or lost card – the customer or the bank?
Generally, people believe that if the card is lost from them, they will be fully responsible for the loss and will have to pay the money. However, Reserve Bank of India (RBI) regulations provide a major relief to customers in such situations.
Zero Liability Rule of RBIAccording to RBI’s clear rules, if a fraudulent transaction takes place after the credit card is lost, in all cases the customer does not have to pay. If you receive an unauthorized transaction message from the bank and you report it officially to the bank within 3 working days, then your liability becomes zero. In such case the full responsibility of the loss remains with the bank.
Here it is very important to understand that this 3 days time limit is not counted from the day the card is lost, but starts from the day you get the message or information about the fraudulent transaction.
If the customer fails to report within 3 working days and lodges a complaint between 4 to 7 working days, the customer’s liability remains up to certain limits as per the bank’s policy. But if there is any fault in the bank’s system itself, the customer does not have to pay even a single rupee.
What to do immediately when a card is lost or fraudulent?
Block the card: First, block (freeze) the card immediately by calling your bank’s mobile app, website or customer care helpline. Even if there is only doubt, it is imperative to temporarily freeze the card.
Check Transaction: Check all recent transactions and flag the ones you haven’t made as fraud.
Keep records: After filing a complaint in the bank, keep a note of the complaint number (Reference Number), date and time received from the customer care.
Police Complaint: If the card is sure to be stolen, file an FIR at the nearest police station so that no legal question arises in future.
Report in Cybercrime: In case of financial fraud, call the National Cybercrime Helpline number 1930 immediately and also file an online complaint on their website.
By being aware as a consumer and taking appropriate action in time, you can easily avoid huge financial losses. Knowledge of the rules is your greatest protection.