According to RBI guidelines, if you are a victim of online fraud and you have informed the bank about a fraudulent transaction within the specified period of time, the bank is responsible to repay the entire amount you have lost.
You must inform the bank immediately, if you are a victim of online fraud. In the past it was your responsibility to prove to the bank that it was not your mistake and you had not carelessly shared your bank details and ATM card with anyone. Now, it is the responsibility of banks to prove that you were careless while transacting online. If you have informed your bank that you have lost money online within 3 working days, the bank is liable to pay the entire amount you have lost.
Get a full refund
If you have lost money due to a fraudulent online transaction and the transaction had occurred on account of the banks deficiency or negligence, the bank will have to refund the entire amount, even if you have not reported the loss. Transactions you make digitally go through intermediaries like the payer bank, payee bank, payment gateway and so on. According to guidelines, no data should be stored with intermediaries, but only transferred. Still, if you are a victim of a fraudulent online transaction, its the bank's fault and they are liable to bear the entire loss.
Report to the bank if online fraud is due to a third-party breach
If you have lost money online due to a third-party breach, you must report it to the bank within 3 working days after receiving the intimation. If you report it to the bank within 3 working days, then the bank will be held responsible to refund the entire loss borne by you.
In case neither the bank nor the customer is responsible for the online fraud and the fault is in the system and you have informed the bank within 4 to 7 days, your liability will be limited to the transaction value or Rs 10,000 whichever is less.
Time limit for refund
After you inform your bank about the fraudulent transaction, the bank is liable to refund the amount within 10 working days. If the customer liability has to be decided by the board of the bank, the complaint has to be resolved within 90 days.