New Delhi: In a notification, the Reserve Bank of India (RBI) has said that from October, banks should bear the full cost of fraudulent transactions happening at point of sales terminals that don't comply with RBI-mandated security features.
The last date for complying with RBI's instructions is September 30 and the central bank has refused to extend the deadline.
In the notification, RBI added the card-issuing bank should ascertain if the POS terminal was non-compliant with security features within three working days of the customer approaching the bank.
If the POS terminal is found non-compliant, the issuing bank should refund the disputed amount to the customer within seven working days. If the bank is unable to refund the amount in seven days, it will have to pay a compensation of Rs 100 per day to the customer.
