RBI Rule: Who will pay the money if shopping is done using a lost credit card? Know this rule of RBI..

Imagine you are returning home from the office, and the metro is very crowded. After reaching home, you search your purse and find that your credit card is missing. Obviously, you will get worried. At that very moment, suddenly a message comes on your phone and in that message it is written - "Rs. 50,000 has been spent from your card...".

What will happen now? The credit card is in your name, so do you have to pay these 50,000 rupees now? This is like a robbery of your savings. If this ever happens to you, do not panic. Know here about the 'Zero Liability' rule of the Reserve Bank of India (RBI). In such difficult times, this rule is your safety shield, which protects you from such fraud. But to take advantage of this, you have to understand the '3-day game'.

What is RBI's 'Zero Liability Protection' rule?

This rule of RBI clearly states that if any unauthorized transaction happens from your account or card, then the amount responsibility you will have depends on how soon you inform the bank. It is divided into three parts:

1. Your responsibility will be 'zero' if...

Not a single rupee will go out of your pocket, and the bank will return the entire amount to you, if:

The fraud has happened due to any mistake or security lapse on the part of the bank.

The fraud has been done by a third party (eg, skimming, hacking) and you have informed the bank about it within 3 working days.

This is the '3-day game'. From the moment you come to know about the fraud, if you report it within the next 3 bank working days, then you have no responsibility.

2. Your responsibility will be 'limited' if...
If you are unable to report within 3 days, but report between 4 and 7 working days, then your responsibility is limited. This limit depends on the type of your account.

3. Your responsibility will be as per the bank's policy if...
If you report the fraud after 7 working days, then how much responsibility you will have will be decided according to the policy approved by the bank's board.

Exception to this rule: When you yourself are at fault
This protective shield of RBI does not work when the fraud has happened due to your own negligence. If you have shared your PIN, password, or OTP with someone, and after that, any fraud happens, then until you report it, you will be responsible for the entire loss.

Your responsibility in case of fraud from a lost card

When do you tell the bank? Your maximum responsibility condition

Within 3 working days, ₹ 0 (Zero). The fraud should not have happened due to your fault (PIN sharing).

Limited responsibility between 4 and 7 working days. Depends on your account and card type.

After 7 working days, the loss may be higher as per the bank's policy.

If you shared PIN/OTP, the entire responsibility is yours till the time you report the loss.

What to do immediately in case of fraud? (Action plan)
Block the card: First of all, immediately block the card through phone banking or the mobile app.

Inform the bank: Call the bank's official fraud reporting number and inform them about the fraud, and take a reference/ticket number.

Send an email: After the call, send an email to the bank with all the information (details of the fraud transaction, reference number). This will be a written proof for you.

File an FIR: Go to the police and file an FIR. A copy of the FIR may have to be submitted to the bank.

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