UNAUTHORISED TRANSACTION LIABILITY
Lost money to a UPI scam? The first 3 days could decide how much you can recover
In the blink of an eye, UPI scams can wipe out your bank savings, but there's hope for victims. The Reserve Bank of India stands ready to safeguard you against unauthorized transactions. Discover essential actions to take the moment fraud strikes, understand how liability is assessed, and find out what steps to take if your bank turns down your claim.
Rs. 15 lakh crore of revenue, questioned by authorities – and the real worry was where the cash went
A company can report a loan, an advance, or an investment even after the cash has moved beyond its control. Sometimes the explanation is legitimate. Sometimes the money has been used for a purpose shareholders never approved. How does this happen?
Rogue AI agents exposing India’s data law blindspots
As companies edge closer to the May 2027 enforcement deadline for the Digital Personal Data Protection (DPDP) law, AI’s emerging cybersecurity risks are creating tension over what might constitute adequate compliance just six to seven months from now.
Compensation of Rs 100 to Rs 5,000 per day for delay by bank in processing your request in these 5 situations
From stuck credit card closure requests to lost property papers, RBI rules require banks to pay you for every day they're late. A customer earlier this year won Rs 3.21 lakh for a delayed credit card closure. Here are 5 situations where the clock ticks in your favour, with compensation ranging from Rs 100 to Rs 5,000 a day.
DigiLocker seeks private partners, Slurrp Farm's fundraise plans
DigiLocker is set to bring more institutions onto its platform with the help of private AI integrators. This and more in today’s ETtech Top 5.
AI agents take over online shopping: Ecommerce firms rethink pricing, verification
India’s ecommerce and digital platforms are preparing for a surge in personal AI agents that could increasingly make shopping decisions and transactions for consumers, forcing companies to rethink pricing, customer engagement and bot verification.
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India Inc seeks legal safeguards as agentic AI raises liability risks
With the growing apprehension surrounding AI safety, Indian businesses are consulting legal experts about the implications of liability linked to autonomous AI systems. The shift from suggestion-based AI to independent decision-making necessitates a thorough examination of existing contracts to stipulate responsibility for AI-induced mistakes. This proactive approach is crucial as the legal landscape grapples with the swift changes brought by AI's increasing autonomy.
HDFC credit card holder lost Rs 1.39 lakh in an unauthorised transaction, bank says card details and OTP were used; court orders HDFC Bank to pay him Rs 1.75 lakh
An HDFC Bank credit card holder disputed a Rs 1,39,901 online transaction he said he had never authorised. HDFC Bank argued that card details and an OTP had been used and blamed the customer for sharing his details during an online scam. The Kakinada consumer commission found that the bank had failed to prove that the customer had authorised the transaction and ordered HDFC Bank to refund the amount with 9% interest, pay Rs 30,000 compensation and Rs 5,000 litigation costs.
Fintechs high on AI, but yet to let it handle your money
The Unified Payments Interface (UPI) processed 24.51 billion transactions worth Rs 29.82 lakh crore in August, according to data from the National Payments Corporation of India (NPCI). Executives said agentic commerce could sit above these rails, but would require verifiable customer mandates, links across banks and merchants, spending limits and audit trails for errors or disputes.
India plans AI registry as it looks to roll out agentic payments, sources say
The landscape of digital finance is evolving as India's payments authority creates a registry specifically for AI agents. This registry aims to verify and oversee AI transactions, initially targeting UPI payments, with potential future expansions. By facilitating agentic payments, AI will be enabled to engage in frequent, minor digital transactions, resonating with global initiatives aimed at the identification and validation of AI-driven financial agents.
Credit card lost, and someone used it; who will cover the lost money - you or the bank?
What if a transaction takes place after you lose your card, and you don’t block it before that? Who has the liability then - you or the bank? There could be an instance where, even when you have reported your credit card as lost/missing, an unauthorised transaction takes place because of the bank’s fault. What then? Do such transactions have impact on your credit score? Find out in this article.
Bank OTPs were sent to duplicate SIM card instead of real one, audit company loses Rs 79 lakh; Bank of India ordered to pay Rs 1.5 crore
An IT Act adjudicating authority has ordered Bank of India to pay Rs 64.44 lakh, which works out to nearly Rs 1.5 crore with 12% annual interest, to a Pune-based audit firm that lost close to Rs 79 lakh in a 2015 cyber fraud. The fraud followed the issuance of a duplicate SIM card that let fraudsters intercept OTPs and banking alerts meant for the firm.
Man loses Rs 9,800 after scratching a fake UPI cashback card; consumer commission orders Federal Bank to pay 17,800; know why
A man lost Rs 9,854 after falling for a fake UPI cashback scratch card scam. Federal Bank initially refunded the amount as required under RBI guidelines, then quietly reversed the credit weeks later, blaming the customer. A Kerala consumer commission has now ordered the bank to restore the full amount along with Rs 5,000 in compensation and Rs 3,000 in costs, ruling the bank failed to prove any negligence on the customer's part.
Man found Rs 1.3 lakh missing from SBI bank account: Rs 80,000 ATM withdrawal, Rs 50,000 transfer made without his authorisation; consumer commission upholds Rs 1.3 lakh refund
A man's SBI bank account was drained of Rs 1.3 lakh through four unauthorised ATM withdrawals and two transfers he says he never made. SBI failed to produce CCTV footage or transaction records before the commission. The Delhi State Consumer Commission has now dismissed SBI's appeal and upheld the full Rs 1.3 lakh refund order.
PSU banks' compensation against fraud rises over three-fold to Rs 140 crore in FY'24
Union Bank of India paid the highest compensation of Rs 74.96 crore followed by Bank of India at Rs 20.38 crore and Indian Bank at Rs 16.16 crore during FY24, FM Nirmala Sitharaman said.
Over Rs 177 crore lost on account of ATM/credit card, internet banking frauds
A customer need not bear any loss if the deficiency is on the part of the bank and in cases, where the fault lies neither with the bank nor with the customer but lies elsewhere in the system and the customer notifies the bank within three working days of receiving the communication about the unauthorised transaction.
Allahabad Bank to pay customer Rs 46,000 lost in unauthorised debits from account; RBI rules on customer liability for unauthorised transactions
How to report unauthorized transaction in savings account: As per the guidelines set by the Reserve Bank of India (RBI), customers will bear limited responsibility in case unauthorized electronic transactions result in deductions from their accounts or cards. Let's take a closer look at the RBI regulations.
UCO Bank glitch: Dos and don'ts for banks and customers
Banks must provide customers with facilities of a website, phone banking, SMS, email, IVR and a dedicated toll-free helpline for reporting unauthorised transactions as well as loss/theft of payment instruments such as cards. They should also be given the facility to report these to home branch.
5 ways RBI has made e-wallets safer for users
Reserve Bank of India has mandated a range of safety valves to protect prepaid payment instrument customers.
RBI issues consumer protection rules for mobile wallets: Users liability limited
If an unauthorised transaction takes place from the customer's mobile wallet due to the negligence of PPI issuer, then, in that case, the customer's liability will be as ZERO.
Watch out, cyber fraud cases in banks are spiking
Spike in cyber frauds is bigger than most other types of bank frauds (5,917) reported in 2017-18
RBI moves to boost digital transactions, protect users
RBI announced reduced consumer liability in case of reported fraudulent digital transactions, and a grievance redressal mechanism for such modes of payment.
Liability of mobile wallet users to be zero, limited in case of fraud, on par with credit card users
As per existing rules, the onus is on the banks to prove that a fraud has taken place, but customers should inform the bank as soon as possible to avoid being penalised.
How much is the bank liable if your account gets hacked? Here's what RBI says
In its Annual Report 2017-18 released today, the RBI has explained the framework on limiting liability of customers.
Got money stolen from your ATM/card? Here's how much your bank is liable
With new security threats emerging every day, customers must know how much liability the bank shares in cases of unauthorised transactions.
Report fraud in 3 days to avoid losses: RBI
Banks will have to shoulder the burden for losses due to contributory fraud.
Customers should report fraud in 3 days to avoid losses: RBI
The Reserve Bank of India (RBI) has notified the norms to limit the liabilities of consumers for unauthorized electronic transactions in their bank accounts.
E-banking fraud: What’s your liability?
The burden of proving customer liability in an unauthorised e-banking transaction lies with the bank, as per the RBI draft guidelines.
Customer not liable if fraud due to bank's negligence or third breach: RBI draft
In cases where customer's own involvement is not clearly established, customer liability will be limited to a maximum of Rs 5,000 if he reports within 4 to 7 working days.
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