To help the customers the Reserve Bank of India has introduced zero liability and a limited liability concept.According to this concept, the customer will not suffer any kind of money loss if unauthorised online banking transactions are reported.But it has to be reported within three days and the amount involved will be credited in their respective accounts concerned within 10 working days time.
A customer's zero liability will also be applicable in the case of third party intervention where the fault lies neither with the bank nor with the customer but lies somewhere else in the system.If the fraud is brought into focus after seven days, the customer liability will be determined as per the bank's Board approved rules and regulation. But the maximum liability of an SB(savings ) account customer will be only up to Rs 10,000 in such cases.
But on the other hand where the loss is due to negligence by the account holder itself , then customer has to bear the entire loss until the unauthorised transaction is brought to the notice of the bank.
