The electronic fund transfer (EFT) system in banks replaces the systems of transactions through checks and deposit slips.
The Electronic Fund Transfer Act was passed to protect consumers using EFT services.
The banker is obliged to disclose the terms and conditions of the account with EFT facility in advance to the customer, which include the following: -
Duty of the customer in the event of loss or pilferage of the EFT card
Transactions in which the customer can participate
Procedure for reporting and correction of errors in the account.
The banker must send monthly accounting statements to the customer for EFT transactions indicating contact phone number and other particulars for resolution of such account statement related queries.
Loss of EFT card
A customer is liable for any unauthorized withdrawal from his account by using his EFT card, which has been lost or stolen.
However, if the customer reports the loss to the banker before any transaction takes place he is no longer liable.
In case the customer reports the loss within 2 business days, his liability is limited to a maximum of $ 50.
When the customer reports the loss of the EFT card to the banker on the expiry of 2 but before the lapse of 60 business days, his liability can go up to a maximum of $ 500.
When, however, the customer does not report the loss of the card within the time limit of 60 business days, he is exposed to the risk of loosing all the money in his account plus overdraft limit, if any, by misuse of his lost credit card.
Error in accounts statement
When there is any error in the accounts statement, the customer must draw the attention of the banker to the same promptly within the maximum time limit of 60 days. If it takes more than 10 days to resolve of the issue or complete the investigation, the banker must re credit the account of the customer with the amount in question provisionally.
