The Reserve Bank of India’s (Commercial Banks – Responsible Business Conduct) Third Amendment Directions, 2026, will come into effect from January 1, 2027. (Representational image)
\n\nThe recent State Bank of India (SBI) data breach has raised concerns about the safety of customers’ banking information and the risk of unauthorised transactions. The bank said the incident affected a "very very small number of customers." "Customer balances are completely safe," the SBI said on Wednesday, adding that it was taking all possible steps to protect customers’ interests.
\n\nBut what happens if money is debited from your bank account without you sharing an OTP or authorising a transaction? The Reserve Bank of India (RBI) has laid down rules governing customer liability in electronic banking frauds, including circumstances in which banks may have to reimburse the money lost.
\n\nExperts suggest that a bank could be held negligent if inadequate fraud monitoring, weak authentication systems, ignored alerts or a data breach contributes to an unauthorised debit.
\n\nThe circumstances surrounding a fraudulent transaction matter when determining whether the bank or customer bears responsibility for the loss.
\n\nRBI's Existing Rules Vs New 2026 Directions: What's Changing?
\n\nUnder the existing framework introduced in 2017, customers can have zero…
Original source: https://www.timesnownews.com/business-economy
