How to Fight Credit Card Fraud India ?

Credit Cards are increasingly being accepted as a means of payment as proved by Data from RBI. However, Credit Card frauds occupies the Top Slot in the Number of Banking Frauds Statistics as released by RBI. Now as the pioneer adviser in this sector, I feel it is my responsibility and have been taking several steps in this direction.

I have received several mails where consumers complain about fraudulent transactions on credit cards. I asked the RBI –
As a Credit Card Customer of a Bank regulated by RBI, what are my rights when a fraudulent transaction occurs on my card which is reported to the bank as disputed transaction?
RBI responded as follows,

In terms of para 4 of the Master Circular on Credit Card Operations DBOD.No.FSD.BC.19 / 24.01.011/ 2009-10 dated Jul1, 2009 that The card issuing bank/NBFC should ensure that wrong bills are not raised and issued to customers. In case, a customer protests any bill, the bank/NBFC should provide explanation and, if necessary, documentary evidence to the customer within a maximum period of sixty days with a spirit to amicably redress the grievances.

How to apply the above clause while fighting against the bank ?

  • Demand a copy of receipt generated by the Point of Sale system on which you normally sign agreeing to pay the amount mentioned in the bill. Compare the signature and in case of fraud, the signature won’t match and hence register a objection with the bank
  • Bank is under the obligation to provide complete explanation and documentary evidence
  • Kindly correspond in writing only with sufficient evidence of your letter having reached them [Speedpost, Registered Ad, Fax with Acknowledgment, etc]
  • During this period, kindly pay off all the amount due on the credit card except the disputed amount
  • If the bank doesn’t show inclination to resolve your case within 60 days take the matter to the ombudsman of the respective bank and wait for 30 days. If the issue is still unresolved then appeal to the RBI Ombudsman

We strongly advise citizens to stay away from credit cards until RBI regulates this industry to the satisfaction of users and makes this product consumer friendly.

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