Important Details

on notifying that transaction, your liability will be up to ` 10,000 and ` 25,000 for credit cards with credit limit of up to ` 5 lakhs and above ` 5 lakhs respectively. In case of delay in reporting the fraudulent transaction beyond seven days, your liability for losses will be as per your credit issuer’s policy.

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Impact of your complaint Once you report a fraudulent transaction, your card issuer will immediately block your card. If the fraud was caused by a third party breach or negligence on the part of the bank, your card issuer is bound to reverse the amount of unauthorised transaction within 10 working days of reporting the transaction. However, the amount credited will be subject to your own liability arising out of the transaction. However, credit card issuers are free to waive off your liability arising from a fraudulent transaction, even if your own negligence led to that fraud.

Apart from the reversal of the amount involved in the fraudulent transaction, card issuers are also bound to resolve your complaint within 90 days of receiving it. Even if the card issuer fails to resolve the complaint, it is bound to reverse the transaction within 90 days as the burden of proving your liability and involvement rests with the cardholder. Moreover, the card issuer has to ensure that the cardholder does not bear any additional interest cost arising out of any fraudulent transaction.

What happens if your bank wrongly discharges your complaint?

If your card issuer deviates from the RBI- set guidelines or wrongly allocates your liability arising from the fraudulent transaction, you can approach the Banking Ombudsman for dispute resolution. Apart the amount involved in the disputed transaction, you may also claim compensation for the inconveniences caused by the card issuer’s handling of your complaint. In case you are not satisfied with Ombudsman’s ruling, then you can file an appeal against it before the Appellate Authority within 30 days of receiving the ruling. The Appellate Authority is vested with an RBI Deputy Governor. If you are still not satisfied with its ruling, then you can approach High Court or consumer forum against the ruling.