Fraud transaction from account and bank is refusing to refund

715 votes

Bank cannot refuse to refund the amount been transferred from your account of the transaction which you are not aware or which is not approved by you or which you have not consented. But if there is any negligence from your side then Bank may refuse. But have to understand the entire detail of the transaction then can provide you the proper guidance.

Advocate Bankim Mehta LawRato

661 votes

Dear Client,
Kindly note the circular from RBI which is self explanatory:

"(a) Zero Liability of a Customer
6. A customer’s entitlement to zero liability shall arise where the unauthorised transaction occurs in the following events:

Contributory fraud/ negligence/ deficiency on the part of the bank (irrespective of whether or not the transaction is reported by the customer).

Third party breach where the deficiency 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 from the bank regarding the unauthorised transaction.

(b) Limited Liability of a Customer

7. A customer shall be liable for the loss occurring due to unauthorised transactions in the following cases:

In cases where the loss is due to negligence by a customer, such as where he has shared the payment credentials, the customer will bear the entire loss until he reports the unauthorised transaction to the bank. Any loss occurring after the reporting of the unauthorised transaction shall be borne by the bank.

In cases where the responsibility for the unauthorised electronic banking transaction lies neither with the bank nor with the customer, but lies elsewhere in the system and when there is a delay (of four to seven working days after receiving the communication from the bank) on the part of the customer in notifying the bank of such a transaction, the per transaction liability of the customer shall be limited to the transaction value or the amount mentioned in Table 1, whichever is lower."

Expert Jurist LLP.

Advocate JV Bhosale LawRato