What are my rights if there is a fraudulent transaction on my bank account?

If there is an unauthorised or fraudulent transaction on your account, RBI rules provide for limited or zero liability for the customer, provided you report it promptly. Quick reporting is the single most important factor in limiting your loss.

Key points

• If you report an unauthorised transaction promptly (within three working days), your liability is generally zero.
• Delayed reporting can increase your liability, so act immediately.
• The burden is on the bank to prove customer negligence in many cases.
• Banks must credit the disputed amount within a specified time once the complaint is verified.
• Keep evidence such as SMS alerts, statements, and your complaint acknowledgement.

Relevant law

The RBI Circular on Customer Protection – Limiting Liability of Customers in Unauthorised Electronic Banking Transactions (2017) governs customer liability. Complaints can be escalated under the RBI Integrated Ombudsman Scheme, 2021. Fraud may also attract offences under the Bharatiya Nyaya Sanhita, 2023 and the Information Technology Act, 2000.

What you can do

• Immediately report the transaction to your bank and block the card/account, keeping the complaint reference.
• File a complaint on the National Cyber Crime Reporting Portal (cybercrime.gov.in) or call 1930.
• If the bank does not resolve it, escalate to the RBI Integrated Ombudsman.
• Consult a banking advocate in Nashik if the bank wrongly holds you liable.