Overview
The Reserve Bank of India has proposed a 60 day outer limit on temporary debit holds on bank accounts or transactions suspected of cyber fraud. The move aims to balance rapid fraud response with protections for customers, ensuring holds do not extend beyond a defined period.
Timeline framework for customers and banks
The draft framework would give customers a 20 day window to explain or contest the suspicious activity. Banks would then apply fixed timelines to complete the review and, if necessary, refer the case to police authorities for further action.
Implications for customers
- Clear deadlines reduce uncertainty about how long a hold can last.
- Structured process helps ensure timely investigations and action.
- A standardized approach across banks with police referrals where warranted.
What customers should do
- Monitor bank alerts and report unfamiliar debits promptly.
- Respond within the 20 day window if contacted by your bank with required information.
- Keep contact details updated and maintain records of communications.
Next steps
The RBI’s proposal is open for feedback, and final guidelines will outline procedures, disclosure norms, and channels for complaints as the framework is finalized.
