You earn money.
Keep it in the bank.
It gets stolen.Bank pays you back .
Right ?
Wrong!
Very very wrong.
If what RBI says sticks, (which it will probably )if you lose your money from the bank ,digitally or physically you are liable to get a maximum of 1 lakh rupees only.Even that has a millions of subclauses!
Doesn’t matter how much money you had in the bank.
This covers everything.
For your lockers it’s even worse.
Don’t believe me?
Read on.
The recent spate of debit card fraud has opened most people’s eye to the threat of digital fraud.
In India where people don’t even
know what to do in case of stolen debit cards this is worrying.
With Aadhar data collected by third parties ,who have all your information and bank account details.
You are the perfect sitting duck for data thefts and major frauds.
The user data which was stolen this time, was apparently related to Malware detection .You are at risk every time you use card at any retail shops ,restaurants,ATMs
Anywhere they use that machine where you slide your card in.That’s a point -of sale machine.This is probably where the malware was inserted.But investigation is pending.The full story will be disclosed after RBIs investigation is complete.
Solution:Carry cash during shopping.
Shop less
Bad for shop owners.Great for you.You will not only save money but protect yourself from unscrupulous people.
Online shopping using debit card?
Use cash on delivery
I rarely use amazon even though it has the best deals .Because sometimes it doesn’t give me COD.
Avoid using Nonbank ATMs
Difficult but must do.This is the excuse that banks are giving now.
Keep your phone number updated with bank .Check online account info only from home Internet with secure connection .
Use strong passwords for all accounts
NEVER from a public PC . There are softwares which can be used to save all transaction details.
How do ATM frauds in India occur?
Did you know ATM s are controlled by third party.
These ATM providers have insurance for theft of money from ATMs.
But in this case appararently the people were at home while money was withdrawn using their card details in USA and China .
IMAGINE the extent and depth of the fraud.
SHOCKINGLY no one is giving us the truth.
Not the bank ,not the government
6.5 million is not a small number if debit card.We don’t know the total amount stolen.
It’s like the money just disappeared and it happened at the same time in a well orchestrated way.
A payment gateway called Hitachi Payment services which has ATM and point -of -sale machines
These third parties manning the ATM have insurance for theft from ATM
In this case it’s a tricky point.Who is responsible .
How safe is your money in the bank?
Did you know bank is not liable to protect you in case of theft from lockers?
That’s because banks don’t have any way of knowing what exactly was in your locker.
It could be a pile of junk for all that they know. They just rent the space.
What makes bank lockers attractive is the amount of security you have which is not possible at home.
As per the RBI: “The bank will, in no way, be responsible/liable for the contents kept in the locker by the hirer. In case of theft, burglary or similar unforeseen events, action will be initiated as per law.”
In case a customer opts for a locker from a bank, it is more of a proprietor and a tenant relationship: banks provide on rent, a secured facility to safeguard your previous processions, and nothing more than
3 RBI RULES you must know
What is the maximum deposit amount insured by the DICGC?
Each depositor in a bank is insured upto a maximum of Rs.1,00,000 (Rupees One Lakh) for both principal and interest amount held by him in the same capacity and same right as on the date of liquidation/cancellation of bank’s licence or the date on which the scheme of amalgamation/merger/reconstruction comes into force?
What is the ceiling on amount of Insured deposits kept by one person in different branches of a bank?
The deposits kept in different branches of a bank are aggregated for the purpose of insurance cover and a maximum amount upto Rupees one lakh is paid.
Does the DICGC insure just the principal on an account or both principal and accrued interest?
The DICGC insures principal and interest upto a maximum amount of Rs. One lakh. For example, if an individual had an account with a principal amount of Rs.95,000 plus accrued interest of Rs.4,000, the total amount insured by the DICGC would be Rs.99,000. If, however, the principal amount in that account was Rs. One lakh, the accrued interest would not be insured, not because it was interest but because that was the amount over the insurance limit.
So what exactly is safe?
(Do let me know if you find resources to support consumers from frauds like this.)
Comment below to let me know.
I am linking to Ultimate blogging challenge with Blogchatter #DailyChatter #UBC Day 26
Disclaimer :I am not a legal or insurance expert .The information I have provided comes from RBI website .
The links provided will guide you to the relevant articles.
Kindly take all actions after following legal advice.
Very informative Amrita! in fact in Indian anything is possible mainly because of the vastness and huge population. this is the reason why we see all kind of fraudulent activities largely happening here.
Atleast we have insurance, even though it has a ceiling we have a minimum guarantee ryt..
You are so right.That’s the main problem.Huge population. No education. Limited resources.No awareness
Very valid points Amrita. i am somehow very much dependent on plastic money. Most of my transactions are over net or cards because i dont find time to go to the ATM for withdrawal! May be I need to rethink it.
We need to be careful.Not panic .Definitely not give up these time savers.Frauds depend on us to make mistakes
thats much needed post i must say .. yes i know banks don’t give security over locker except in some private paid banks where we required to give complete details about our things . everyone must keep in mind these points to prevent from getting trapped
Thanks Bushra.Yes the locker thing is a strange problem .
Private banks unfortunately have other problems including security breaches
Good one Amrita and an informative and useful post. I do lot of online shopping but try to order through COD only. Going to remember all the points you told and act wisely 🙂
Yes I do the same Deepa.Thanks for reading
Data security is a huge concern and it’s even worse with Aadhaar because that data is managed by third parties and there’s absolutely zero security in place. One reason why I have not linked it to my bank account. Shocking, this is!
Thanks Shinjini.You are absolutely right.Its worse with AADHAR.Its shocking that most people are clueless about this
You are absolutely right.Shockingly most people are not clued in about data theft and privacy issues.Its shameful how people are being taken for a ride.Thanks for reading Shinjini
These all news have been very stressful.. thanks for sharing these facts.. some of these I knew, some I didn’t… where are we safe anyway.. tough tough world..
Such an eye opening post a and this is the main reason My father always says no to online banking to me
Sad to know about RBI rwules that it is limited to a security of only 1 lakh :/
Yes that’s the shocking part for me too.1 lakh insurance is a slap on the face of people who have all their lives saving in banks????
This is scary!
But it should act as an eye opener for us. Credit Cards are easy to carry and use, but we must limit their usage. We will only be benefitting by saving money!
Thanks for explaining this so simply that even a layperson like me understood it all.
Thanks Mayuri .Glad you found this useful.I am.shocked by the total lack of security our data us facing in India ????