Banks are liable to compensate customers for “unauthorised and fraudulent” online transactions involving their accounts provided the victim lodges a complaint within the RBI-stipulated three days, the Supreme Court has ruled in a huge relief to account holders.
“It is the responsibility of the bank so far as such unauthorised and fraudulent transactions are concerned. The bank should remain vigilant. The bank has the best of the technology available today to detect and prevent such unauthorised and fraudulent transactions,” the bench of Justice J.B. Pardiwala and Justice R. Mahadevan said.
But it sounded a caution: “We expect the customers, ie, the account holders also to remain extremely vigilant and see to it that the OTPs generated are not shared with any third party.
In a given situation and in the facts and circumstances of some case, it is the customer also who could be held responsible for being negligent in some way or
the other.”