RBI Reassures Bank Customers...

The Reserve Bank of India has introduced new guidelines to make electronic banking transactions safer. Under the new rules, if a customer becomes a victim of fraud through credit card transactions, banks must provide a shadow reversal, or temporary credit, within five days of the complaint.

The RBI has also made it mandatory for banks to send SMS alerts for every transaction above ₹500. Banks may decide whether to send alerts for transactions below ₹500, but they cannot charge customers for such messages. The new guidelines will come into effect from January 1, 2027.

According to the RBI, customers will not bear any liability if fraud occurs due to negligence or system failures on the part of banks. In cases involving third-party breaches, customers will have no liability if they report the fraud within five days. The rules apply to credit cards, debit cards, UPI, internet banking, mobile banking, IMPS, NEFT, and RTGS transactions.