The Reserve Bank of India (RBI) is keen on pushing for a 'zero liability' system under which a credit card holder would not liable for transactions done fraudulently using his or her card, reports said.
RBI Executive Director G Padmanabhan on Monday was quoted as nudging the lenders to implement such a policy at bank's event in Chennai on Monday by asking whether it the time was not ripe "to implement a zero liability policy".
Under current norms in India, a customer is responsible for reporting the loss of a card within 24 hours to pass on the liability of fraudulent transactions.
In countries such as United States however, a card issuing institution allows a customer to review their monthly statements and point out an unauthorized transaction; only to get it provisionally credited, at a later period, for losses from unauthorized card use.
