Zero liability
Also called Limited liability of customers
RBI's rule that you lose nothing in an unauthorised transaction that you report quickly.
Zero liability comes from RBI’s 2017 rules on unauthorised electronic banking transactions. It covers cards, net banking and other electronic payments. The key is speed: the clock starts when the bank alerts you, and every working day you wait can move you from zero loss to a capped loss. If you shared your OTP or PIN yourself, you can bear the loss until you report it. Check the current RBI rules before you rely on these timelines.
Questions people ask
What is zero liability in banking?
It is RBI's rule that you bear no loss from an unauthorised electronic transaction if the fault lies with the bank, or if a third party caused it and you report it within three working days of the bank's alert.
What if I report after three days?
If you report within four to seven working days, your loss is capped at the transaction value or a limit, whichever is lower: 5,000 rupees for basic savings accounts, 10,000 for most savings accounts and cards up to a 5 lakh limit, and 25,000 for other current accounts and higher-limit cards. After seven working days, the bank's own policy decides.
How soon must the bank return the money?
RBI says the bank must credit the disputed amount within 10 working days of your report and resolve the complaint within 90 days. Check the current RBI rules, as these directions are updated from time to time.
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