Banks to pay for credit card frauds, RBI says

The Reserve Bank of India has refused to extend the deadline for upgrading security on credit card swipe machines and has ordered banks to compensate cardholders in seven days if any fraud occurs on non-compliant terminals.

If the bank fails to refund the disputed amount in seven days, it has to compensate the cardholder with a penalty of Rs 100 per day until the date of payment. At present, dispute resolution is a cumbersome process and takes several weeks in case of credit card frauds.

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