Module: | KYC, NPAs, Advances & Investment Valuations
Q186: Scenario: A third-party security breach occurs at a bank, resulting in unauthorized transactions across multiple customer profiles. None of the customers shared their payment credentials. Based on RBI guidelines, consider the following statements regarding the correct regulatory actions to determine customer liability:
1. A customer who reports the unauthorized transaction within three working days of receiving the communication is entitled to zero liability.
2. A Basic Savings Bank Deposit (BSBD) account holder who reports the transaction on the fifth working day faces a maximum capped liability of ₹10,000.
3. A standard Savings Bank account holder who reports the transaction on the sixth working day faces a maximum capped liability of ₹10,000.
4. The bank must credit the shadow reversal of the involved amount to the customer's account within 10 working days from the date of notification.
Which of the statements given above is/are correct?
2. A Basic Savings Bank Deposit (BSBD) account holder who reports the transaction on the fifth working day faces a maximum capped liability of ₹10,000.
3. A standard Savings Bank account holder who reports the transaction on the sixth working day faces a maximum capped liability of ₹10,000.
4. The bank must credit the shadow reversal of the involved amount to the customer's account within 10 working days from the date of notification.
Which of the statements given above is/are correct?
✅ Correct Answer: A
The correct answer is A. Statement 1 is correct: In the event of a third-party electronic banking breach, customers are granted absolute zero liability if they successfully report the unauthorized transaction within three working days.
Statement 2 is incorrect: For Basic Savings Bank Deposit (BSBD) accounts, if the delay in reporting falls within the four to seven working days window, the maximum customer liability is strictly capped at ₹5,000, not ₹10,000.
Statement 3 is correct: Under the exact same four to seven working days reporting window, standard Savings Bank accounts and Current accounts with limits up to ₹25 lakh face a maximum liability cap of ₹10,000.
Statement 4 is correct: Upon receiving the fraud notification, the bank is legally obligated to execute a shadow reversal credit to the customer's account within ten working days, ensuring liquidity while the investigation proceeds.
Statement 2 is incorrect: For Basic Savings Bank Deposit (BSBD) accounts, if the delay in reporting falls within the four to seven working days window, the maximum customer liability is strictly capped at ₹5,000, not ₹10,000.
Statement 3 is correct: Under the exact same four to seven working days reporting window, standard Savings Bank accounts and Current accounts with limits up to ₹25 lakh face a maximum liability cap of ₹10,000.
Statement 4 is correct: Upon receiving the fraud notification, the bank is legally obligated to execute a shadow reversal credit to the customer's account within ten working days, ensuring liquidity while the investigation proceeds.