What to do if money goes missing from your bank account? Learn about RBI rules and the complete process for claiming a refund..
Banking Fraud Alert & RBI Guidelines: In the era of digital banking, instances of unauthorized withdrawals or fraud from bank accounts are frequently coming to light. Recently, a major incident occurred at a Punjab National Bank (PNB) branch in Greater Noida, where crores of rupees vanished from customers' accounts and fixed deposits (FDs) without any prior notification or message alerts.
If money is deducted from your bank account without your consent, or if you fall victim to fraud, it is crucial to take the right steps immediately rather than panicking. Under the Reserve Bank of India (RBI) guidelines, customers are guaranteed protection and refunds in such cases. Here is what you should do right away.
What to do first if money is stolen from your account?
1. Notify the bank immediately: File a complaint regarding the fraud through your bank’s official customer care number, mobile app, or website. Request the bank to freeze your account or block debit transactions immediately to prevent further unauthorized deductions.
2. Keep the complaint reference number safe: After filing a complaint with the bank, retain the complaint reference number, any SMS/email alerts regarding the transactions, bank statements, and screenshots as evidence.
3. Call the 1930 cyber helpline: Report financial cyber fraud immediately by calling the national cybercrime helpline number 1930, or by filing a complaint on the portal cybercrime.gov.in. If you are unable to connect to 1930, ensure you notify your bank immediately without wasting any time.
Who bears the loss? Understanding RBI’s refund rules
According to RBI regulations, a customer's liability in the event of fraud depends on how promptly the complaint is filed:
Zero Liability: If the fraud occurs due to the bank's negligence or a system failure (such as the internal failure/glitch seen in the recent PNB case), the customer is not held responsible, regardless of when the complaint is filed. If a fraud occurs due to a third-party breach (where neither the bank nor the customer is at fault) and the customer notifies the bank within 3 working days of receiving an alert, the customer’s liability will be 0%. The bank must refund the entire amount.
Limited Liability: If the customer reports the incident between 4 and 7 working days, their maximum liability will be limited to an amount ranging from ₹5,000 to ₹25,000 (depending on the account type) or the actual fraud amount—whichever is lower.
Sharing OTP or PIN: If the loss occurs due to the customer’s negligence (such as sharing an OTP, PIN, or password with someone else), the customer will bear the full loss incurred up until the time the complaint is filed. However, the bank will cover any additional losses that occur after the complaint has been filed.
Reporting after 7 working days: In such cases, the customer’s liability is determined according to the bank’s board-approved policy.
Within what timeframe must the bank provide a refund?
Provisional Credit within 10 days: As per RBI guidelines, in cases involving zero or limited liability, the bank is required to provide a provisional credit to the customer’s account within 10 working days of receiving the complaint. This credit will be effective from the date the funds were debited.
Final Resolution within 90 days: The bank must complete its investigation and reach a final resolution regarding the complaint within a maximum of 90 days. If the bank fails to resolve the matter within this 90-day period, it must provide full compensation.
No loss of interest: In the event of fraud involving savings accounts or debit card accounts, the bank must ensure that the customer does not suffer any loss of interest.
Disclaimer: This content has been sourced and edited from Money Control. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
