Indian banks carried out the country’s largest-ever card replacement move after a massive figure of 3.2 million accounts were compromised in an elephantine data breach that was found to have stemmed from China. Many top banks in the country, including national lender State Bank of India (SBI) and others – HDFC Bank, YES Bank, ICICI Bank, and Axis Bank were among those hit. While there has been a proactive measure to safeguard customers, there are a few things you should be well aware of when something of this enormity takes place.
Who to go to when your hard-earned money vanishes all of a sudden?
The Reserve Bank of India (RBI) says ‘you can put the blame on banks’. A draft by the central bank on debit cards stipulates that for any monetary loss due to breach of security or failure of security, makes it liable on the bank to bear the loss. As per the draft, on being notified by the customer, the bank should credit the amount involved in the unauthorized electronic transaction to the customer’s account within a span of 10 working days. RBI said in the draft that the burden of proving customer liability in case of unauthorized electronic banking transactions will lie on the bank. The customers have to show that the transaction wasn’t effected by them and took place without authentication.
RBI has also proposed that the banks should ensure that a complaint is resolved within a span of 90 days and in case of debit card/bank account the customer doesn’t lose out on interest. In case of credit cards, banks should also ensure that the customers don’t have to bear any added interest burden.
Banks must ask the customers to mandatorily post for alerts, the RBI draft added. Thus it is extremely important to remember to inform your bank or else the bank can’t be held liable.
What is the next immediate step to be taken by the banks? How do customers ensure the prevention of it not occurring again?
Banks shall issue you a brand new card at no cost. You can generate the PIN via SMS/ IVRS (Interactive Voice Response System)/internet banking without even visiting the branch. Also, cardholders can collect the physical ‘PIN mailer’ from their home branch.
Most of the banks provide you with the option to choose card network companies for added safety. Additionally, the customers can set their own card limit via internet banking based on requirement. These services are simple to operate and available free of cost to cardholders. Banks might also ask you to change your PIN – personal identification number as a precautionary measure.
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