MUMBAI :  Zero liability should lie on a customer in electronic banking transactions if the bank cannot establish negligence by the customer, the Reserve Bank of India said at its annual banking ombudsmen conference.

The report of the annual conference was uploaded on RBI’s website on Friday. “The onus of proving customer level negligence would be on the bank and when such negligence is not established beyond doubt, the benefit of such doubt may be given to the customer,” the release said.

The Indian Banks’ Association may also ask banks to stop levying a pre-payment penalty on customers who avail of floating rate loans while also ensuring that fixed rate loans are truly fixed and not referenced to a floating rate benchmark, the release said.  -Cogencis

(To receive our E-paper on whatsapp daily, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

Free Press Journal

www.freepressjournal.in