New Delhi: Almost everyone has a credit card in their pocket these days. Various offers, discounts and reward points are available on credit cards. Many people use credit cards instead.

Credit cards are widely used for purchasing goods on e-commerce websites as well. However, with the increase in the use of credit cards, fraud is also increasing. Money is being stolen from credit cards through OTP, theft of card details and spam links.

The Reserve Bank of India has taken important decisions to help those who are victims of such fraud. Banks have given important instructions on credit card fraud. What did the RBI order?

The Reserve Bank of India has directed that victims of credit card fraud must return the money within five days. It said that whether the customer complains or not, the banks must cancel the fraudulent transaction and refund the money. New rules have been enacted limiting consumers' liability in cases of digital fraud.

When will this rule be implemented? These new guidelines will be effective from January 1, 2027. If the fraud is due to the bank's mistake or negligence, the banks must refund the full amount within five days.

If the fraud occurs due to hacking by a third party through no fault of the bank or the customer, the customer will have no liability if a complaint is filed within five days. If complaint is lodged after five days, decision will be taken as per bank's policy. If any unauthorized transaction takes place after the complaint is filed by the customer, the bank will be held responsible.

The customer has to pay back the stolen money. In this case, no interest or additional charges can be levied. How much will be refunded?

85 per cent compensation to be paid in case of first time cyber fraud up to Rs 50,000. But this compensation will be given only once in a lifetime. Banks have to send SMS for transactions above Rs 500 done by customers through digital channels.

Banks have to decide as per their internal policy for transactions up to Rs.500. These rules will come into effect from next year.