Why Quick Action Matters When a credit‑card statement shows a charge you don’t recognise, the first step is to verify the transaction. If the charge is indeed unauthorised, the Reserve Bank of India (RBI) offers a zero‑liability guarantee, but only if you report the breach within three working days. Delaying the report can shift liability to the cardholder, especially if the cardholder is found to have shared credentials or acted negligently.
Reporting an Unauthorised Transaction Most banks allow customers to lodge a dispute via their mobile app, website, or customer‑care line. Once reported, the bank may place a temporary hold on the card and issue a replacement. It is crucial to keep a written record of the complaint: the date of contact, the complaint number, the disputed amount, and any verbal or written guidance received from the bank.
Billing Disputes vs. Fraud If the transaction is legitimate but the amount is wrong—such as a duplicate charge or an incorrect billing figure—the issue is a billing dispute, not fraud. In this case, provide the bank with evidence such as invoices, cancellation emails, or refund confirmations. The bank will investigate and decide whether to credit the disputed amount.
Managing the Rest of the Statement A dispute does not automatically suspend payment on the entire statement. Cardholders should continue paying undisputed amounts by the due date to avoid late fees or credit‑score impact. Clarify with the issuer how the disputed transaction will be treated during the investigation.
Escalating a Rejected Claim If the bank rejects your dispute, do not accept a generic “dispute rejected” reply. Ask for the specific reason and any supporting documents used to reach that decision. If you have additional evidence, submit it for reconsideration.
RBI Ombudsman – The Final Recourse Should the bank fail to respond within 30 days or provide an unsatisfactory resolution, consumers can file a complaint with the RBI Ombudsman under the Integrated Ombudsman Scheme (2026). The process is free of charge and can be initiated through the RBI’s Complaint Management System. Keep all prior correspondence and documentation handy to support your case.
Practical Tips for Cardholders - Report unfamiliar or incorrect charges immediately. - Keep a log of every interaction with the bank. - Separate fraud disputes from billing errors. - Never share OTPs, PINs, CVVs, or other card details with anyone claiming to be a bank representative.
Looking Ahead The RBI’s Integrated Ombudsman Scheme is slated for full implementation in 2026, promising a streamlined path for unresolved disputes. Consumers should stay informed about any updates to the scheme’s timelines and eligibility criteria.
By acting swiftly, documenting every step, and knowing the escalation avenues, cardholders can protect themselves against fraud and billing errors while ensuring a smoother resolution process.