Today's
Post is on the Inaugural address by Shri G.Padmanabhan, Executive
Director, Reserve Bank of India on the occasion of the launch of
Mobile Banking services by Tamilnad Mercantile Bank Ltd on 9 January,
2012 at Chennai.
The
complete Speech can be accessed at
http://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=652
Many
new ideas in the Indian Payments Arena have been outlined in the
speech.
On
a quick reading, the ZERO LIABILITY/Limited Liability feature
adopted by major credit card issuers in USA seems to be the highlight
of the speech.
What
is Zero Liability/Limited Liability feature in Credit Cards ?
In
simple terms, Zero Liability can said to be a valuable benefit for
consumers, virtually guaranteeing protection against card fraud.
Of
course like all good things in life, Zero Liability has its own terms
and conditions. The terms and conditions can said to be
- of the Card Issuing Company I.e Visa or Master or American Express or Diners
- of the Card Issuing Bank
There
is a view that Indian credit cards holders should be offered the
benefits of 'Zero Liability' feature. This has started and HDFC Bank
Platinum Plus Credit Card holders and HSBC Gold Credit Card holders
can enjoy this feature. It is to be noted that the 'zero liability',
starts only the card holder informs his/her Bank the loss of the
credit card has been reported to the Bank in writing or to the VISA /
MasterCard Global Emergency Assistance Helplines.
A
similar facility is offered by all Credit Cards Issuing Banks to
their high-end credit cards.
To
increase the confidence of the credit cards holders in credit card
transactions, the speech suggests that the 'zero liability', feature
be extended to all credit card holders as long as the customer has
adhered to all the risk measures prescribed by the bank, but yet
unauthorized transactions have taken place in his/her credit card
account.
Hm,
which bank will be the first one, to offer this facility.
