By reducing liability of the customer, RBI expects banks to put more robust systems in place. MUMBAI: Concerned over the rise in complaints about unauthorized electronic transactions, the Reserve Bank of India has introduced a policy of 'zero liability' for customers in third-party frauds if they are reported within three days. Existing norms require banks to compensate customer only up to a limit. If there is a reversal of a debit card fraud or net banking fraud, banks have to make good the loss of interest income.The proposed norms place much more responsibility on the banks than in the past. This can be either by way or an SMS, email or statement.

Source: Times of India August 11, 2016 20:15 UTC