Overview
When money leaves your account without your authorisation — a skimmed card, a SIM-swap, a hacked net-banking login, a UPI debit you never made — RBI's limited-liability framework decides who bears the loss, and it turns almost entirely on how fast you reported. Report within 3 working days of learning of the fraud and your liability is zero where the breach wasn't your doing; within 4–7 days it's capped; banks must credit the disputed amount (shadow reversal) within 10 working days and resolve within 90. Banks routinely reject claims citing 'customer negligence' — most of those rejections don't survive a properly argued Ombudsman complaint.
Key Provisions — RBI Limited Liability Directions + Payment Systems Law, 2017
- Zero liability where the fraud arises from the bank's or a third party's breach and you report within 3 working days.
- Limited liability (₹5,000–₹25,000 caps by account type) for reports within 4–7 working days; bank policy governs beyond.
- Shadow credit of the disputed amount within 10 working days of reporting; complaint resolution within 90 days.
- The burden of proving customer negligence lies on the bank — not on you to prove innocence.
What You Can Get
How We Handle It
Report & Freeze
Bank fraud reporting + 1930/cybercrime.gov.in the same day — the clock decides liability.
Written Claim
A liability-framework claim citing the RBI directions, not a plain 'complaint'.
Ombudsman
RBI Ombudsman complaint (CMS portal) when the bank rejects or stalls past 30 days.
Recovery
Reversal with interest — consumer commission for compensation where warranted.
Frequently Asked Questions
The bank says I must have shared my OTP, so no refund — is that the end?
No. The bank must prove your negligence; assertion isn't proof. SIM-swap, malware, and social-engineering frauds regularly win at the Ombudsman despite an OTP having been entered.
I noticed the fraud 2 weeks later — am I out of luck?
Liability beyond 7 days follows the bank's board-approved policy, and deficiency claims plus Ombudsman routes still exist. Slower is weaker, but not hopeless — report now.
Legal Connect connects you with independent advocates; we are not a law firm and this page is general information, not legal advice. In active fraud situations, report to your bank and 1930 immediately — then call us on +91 22 6555 3444.