Summary of this article
Report unauthorised bank transactions immediately, even at night
Use official bank channels and preserve complaint reference numbers
RBI rules determine customer liability based on circumstances and reporting timelines
If you ever discover that your money has disappeared from your bank account in the middle of the night, it can be an alarming and confusing situation to be in. However, waiting until the morning to report suspected theft or fraud could put your remaining funds at risk. Bank customers can report any unauthorised electronic transactions at any time, even when the bank branches are closed for the day.
The Reserve Bank of India (RBI), in its circular on Customer Protection - Limiting Liability of Customers in Unauthorised Electronic Banking Transactions, directs banks that are offering electronic banking services to provide customers with 24x7 access through multiple channels to report unauthorised transactions and the loss or theft of payment instruments.
Contact Your Bank Without Delay
The first step after noticing any suspicious transaction is to contact your bank through its official customer care number. This information is made available on the respective bank’s website, mobile application and debit card. Explain that the transaction was not authorised and register a formal complaint. Request a complaint reference number and preserve it for future correspondence.
One should also take immediate steps to prevent further losses. Depending on how the fraud was conducted, ask the bank to block the affected debit card in order to restrict any future transactions.
RBI guidelines determine customer liability in unauthorised transactions, especially digital, based on the circumstances and reporting timeline. If the loss results from negligence or a deficiency on the bank’s part, the customer may have zero liability. Customers may also qualify for zero liability if neither the customer nor the bank was responsible, and if the incident was reported within the given timeframe.
However, if the customer shares any sensitive credentials, such as an OTP or UPI PIN, with the fraudsters, the customer may be held responsible for losses. Hence, immediate reporting is essential even if it does not guarantee a refund.
Try reporting the incident through mobile banking or internet banking if the customer care lines are blocked. Try blocking the affected payment facility through the application if that option is available on digital platforms. One should always save digital records, like screenshots, complaint acknowledgements, and call records.
Never postpone reporting suspected bank fraud until business hours.
