Thursday, October 20, 2016

When your card is blocked after a data breach, what will happens to your money.

The Indian banks started the country's biggest ATM card replacement move after million of accounts were compromised in a massive data breach .

There has been a proactive measure to protect customers, there are a few things you should be aware of when something of this incident happens.

Who should you go to if your money goes missing?

According to RBI banks are responsible. The bank is liable to bear the loss, for any monetary loss on account of breach of security or failure of the security, stipulates a draft by the central bank on debit cards.

As per the draft, on being notified by the customer, the bank should credit the amount involved in the unauthorised electronic transaction to the customer's account within 10 working days.

The RBI said in the draft, the burden of proving customer liability in case of unauthorised electronic banking transactions shall lie on the bank. Customers have to prove that the transaction was not effected by them and happened without authentication.

RBI has also proposed that banks should ensure that a complaint has been resolved within 90 days and in case of debit card/bank account the customer does not lose out on interest. In case of credit card, the banks should also ensure that the customer does not have to bear any additional burden of interest.
Banks must ask their customers that it is mandatory register for alerts, the RBI draft says.

So, in case of any such type of incident, remember to inform your bank or else the bank cannot be held liable.

What do banks do after this and how do customers ensure this doesn't happen again?

The banks will issue you a new card at no cost. You can generate the PIN through SMS/IVRS/internet banking without visiting the branch. Alternatively, cardholders can collect the physical PIN mailer from their home branch.

Banks may also ask you to change your personal identification number (PIN) as a precaution.

The customer must change their PIN time to time to ensure safety...

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