Module: General Practice
Q13: According to the RBI guidelines on Customer Liability in Unauthorized Electronic Banking Transactions (valid as of February 2026), in which of the following scenarios does a customer have "Zero Liability"?
✅ Correct Answer: C
🎯 Quick Answer:
The customer has Zero Liability in cases of third-party breach if reported within 3 working days.Structural Breakdown: Under the RBI Charter of Customer Rights and the Master Circulars, Zero Liability is granted in two specific cases: 1. Contributory Fraud or Negligence by the Bank: If the fraud occurs due to a lapse on the part of the bank (e.g., employee fraud or system compromise), the customer has zero liability regardless of when they report it.
2. Third-Party Breach: If the deficiency lies neither with the bank nor the customer (e.g., a malware attack or skimming), AND the customer notifies the bank within 3 working days of receiving the alert.
Historical or Related Context: If the customer reports after 3 days but within 7 days, they face "Limited Liability." If they report after 7 days, the liability is determined by the Board Approved Policy of the bank.