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Banks need to compensate for any electronic fraud to customers

Banks will now need to compensate the customers for electronic frauds unless the bank can prove that fraud occurred due to negligence of the customers.

These are the new rules of Reserve bank of India which are very customer friendly and can be said gift of this New Year 2014.

This is the part of revised code approved by BCSBI (Banking Codes and Standards Board of India) which are with many customer friendly announcements which are as under.
1- This is the bank duty to prove customer have compromised with username and password in case of electronic fraud.

2- The code also simplifies the process of opening basic bank account.

3- Banks will provide doorstep service for disabled and senior citizen customers.

4- Every bank as well as branch must offer basic saving account.

According to chairman of BCSBI. "The revised code says that if the customer incurs any direct loss due to a security breach of the Internet banking system that is not contributed or caused by the customer, the bank will bear the loss, unless it is able to establish that the customer is guilty."

Banks also cannot compel the customers to buy third party products such as gold coins or insurance. 

This is the bank responsibility for any acts of omission and commission committed by business correspondents.

Banking Calculators GST

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  1. Banks also need to compensate clients for NOT issuing FORM16A for TDS in time as a result of which clients are unable to CLAIM REFUNDS from IT Dept.

  2. Why Electronic Frauds only?
    IOB Chhedanagar allowed a fraudster to ENCASH a client's cheque for Rs.14000/- without even checking whether he has a cheque book or even identifying him personally. The account holder NEVER got his money from IOB.