Credit card theft: Essential steps and RBI liability rules

In the event of a lost or stolen credit card, immediate action is required to minimize financial loss. The primary step is to block the card instantly using a bank’s mobile app, internet banking, or 24/7 helpline. According to Reserve Bank of India (RBI) guidelines, card issuers must block the card immediately upon receiving notification.

Liability for unauthorized transactions depends on how quickly the customer reports the incident. If a customer reports an unauthorized transaction within three working days, their liability may be limited or zero, particularly in cases involving bank negligence or third-party system breaches. However, if the fraud is due to the customer’s own negligence, such as sharing payment credentials, the responsibility may fall on the cardholder.

After blocking the card, customers should review recent transactions via their banking app and immediately report any unrecognized activity to the bank, ensuring they retain the complaint or reference number for future verification.