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Card and bank billing

India — RBI limited liability for unauthorised electronic banking transactions

NationalINRead off primary law

India

Rule id
billing.in-rbi
Version
1.0.0
In force from
July 6, 2017
Last read against its sources
August 5, 2026
Countries bound
India

In plain language

What this regime says.

The Reserve Bank's 2017 circular limits what an Indian bank customer can be made to bear for an unauthorised electronic transaction. Report within three working days and you owe nothing. Report within seven and your liability is capped at ₹5,000, ₹10,000 or ₹25,000 depending on the account. Either way the bank must credit the money within ten working days and resolve within 90.

Who is covered

Customers of any bank in India, on any electronic channel — card, net banking, UPI, wallet, mobile banking.

What you get

The amount credited back with the value date of the original debit, within ten working days of notification, plus compensation if the complaint is not resolved within 90 days.

Where claims go wrong

  • Reporting by phone and not obtaining the complaint reference and timestamp, which is what fixes your liability tier.
  • Accepting "an OTP was used" as an answer. The burden of proving your liability is on the bank.
  • Waiting for the investigation before asking for the credit. The ten-working-day reversal is not conditional on it.
  • Assuming a late report means nothing is recoverable. Zero liability where the bank was at fault has no time limit.
The official claim route

Authority

Every citation,
with its pinpoint.

A claim that cites “EU law” gets filed. A claim that cites Article 7(1)(c) gets answered. These are the exact coordinates this entry rests on.
  1. RBI/2017-18/15 — Customer Protection: Limiting Liability of Customers in Unauthorised Electronic Banking Transactions (6 July 2017)Reserve Bank of India master circular on customer liability for unauthorised electronic banking transactionsURL verified 2026-08-05Paras 6-9 (zero liability, limited liability, reversal timelines) and para 12 (burden of proof)
  2. Reserve Bank — Integrated Ombudsman Scheme, 2021Reserve Bank – Integrated Ombudsman Scheme, 2021
  3. Consumer Protection Act, 2019Consumer Protection Act, 2019 (India)Deficiency in service; District/State/National Consumer Disputes Redressal Commissions

Sources

Where a figure is indexed, converted or published by a regulator rather than fixed in the instrument, the provenance is recorded separately. Anything marked as a modelled estimate is exactly that — a model, not a statutory number.

What it imposes

Clocks, defences and the ladder.

A rule module builds these while it evaluates, because a limitation period depends on which forum is open to you. What follows is the structure this regime produces — deliberately with no dates and no figures, because those belong to your facts rather than to the law.

The clocks it starts

  • Notify the bank (3 working days for zero liability)Notify within three working days of the bank's communication and your liability is nil where the fault lay with neither you nor the bank. Use the bank's dedicated 24x7 reporting channel — the circular requires banks to provide one, and to send an acknowledgment with a complaint number.RBI/2017-18/15 — Customer Protection: Limiting Liability of Customers in Unauthorised Electronic Banking Transactions (6 July 2017) — Paras 6-9 (zero liability, limited liability, reversal timelines) and para 12 (burden of proof)Notice period
  • Limited-liability window (7 working days)Between four and seven working days your liability is capped by the circular's table. Beyond seven working days the bank's Board-approved policy governs — which is a weaker position, not a hopeless one.RBI/2017-18/15 — Customer Protection: Limiting Liability of Customers in Unauthorised Electronic Banking Transactions (6 July 2017) — Paras 6-9 (zero liability, limited liability, reversal timelines) and para 12 (burden of proof)Notice period
  • Shadow reversal by the bank (10 working days)The bank must credit the amount within ten working days of your notification, irrespective of whether the transaction was reported within the prescribed period, and irrespective of whether the insurance claim it may make has been settled. Quote this: it is the paragraph banks most often ignore. (Period: 10 business days. We need the start date to work out your exact deadline.)RBI/2017-18/15 — Customer Protection: Limiting Liability of Customers in Unauthorised Electronic Banking Transactions (6 July 2017) — Paras 6-9 (zero liability, limited liability, reversal timelines) and para 12 (burden of proof)Response due
  • Complaint resolution (90 days)The bank must resolve the complaint within 90 days of receipt. If it does not, it must compensate you as if the claim had been decided in your favour. (Period: 90 days. We need the start date to work out your exact deadline.)RBI/2017-18/15 — Customer Protection: Limiting Liability of Customers in Unauthorised Electronic Banking Transactions (6 July 2017) — Paras 6-9 (zero liability, limited liability, reversal timelines) and para 12 (burden of proof)Response due

What it entitles you to, beyond money

  • The bank has to prove you were liable, not the other way roundThe circular states expressly that the burden of proving customer liability in an unauthorised electronic banking transaction lies on the bank. Put that sentence in your first letter. It reframes the entire exchange, because the bank cannot simply assert that an OTP was used and stop there.Paras 6-9 (zero liability, limited liability, reversal timelines) and para 12 (burden of proof)
  • Provisional credit within ten working daysThe reversal is not conditional on the outcome of the investigation. Ask for the shadow reversal by name and give the bank a date.Paras 6-9 (zero liability, limited liability, reversal timelines) and para 12 (burden of proof)
  • Use the mandated 24x7 reporting channel and keep the referenceBanks must provide multiple channels — SMS, email, IVR, a dedicated toll-free number, the branch — with an immediate acknowledgment carrying a complaint reference and a timestamp. That timestamp is what fixes your tier, so obtain it and keep it.Paras 6-9 (zero liability, limited liability, reversal timelines) and para 12 (burden of proof)

What the other side will say

Each of these is a refusal this regime lets a counterparty attempt, paired with the answer to it. Reading them before you write is worth more than any amount of polish on the letter itself.

"An OTP was used, so the transaction was authorised by you"

high likelihood

The bank treats successful two-factor authentication as conclusive.

What answers it

The circular puts the burden of proving customer liability on the bank. An OTP record shows a code was entered; it does not show who entered it or how they came by it, and where the code was obtained through a compromise of the bank's systems or a SIM-swap the bank permitted, the deficiency is the bank's and the zero-liability limb applies whatever the delay.

RBI/2017-18/15 — Customer Protection: Limiting Liability of Customers in Unauthorised Electronic Banking Transactions (6 July 2017) — Paras 6-9 (zero liability, limited liability, reversal timelines) and para 12 (burden of proof)

"You reported late, so you bear the loss"

high likelihood

The bank applies the beyond-seven-working-days limb and offers nothing.

What answers it

The tiers apply only to third-party breaches where the deficiency lies with neither party. Zero liability under the first limb has no time limit at all where there was contributory fraud, negligence or deficiency on the bank's part. Ask which limb the bank says applies and why, and ask for its Board-approved policy.

RBI/2017-18/15 — Customer Protection: Limiting Liability of Customers in Unauthorised Electronic Banking Transactions (6 July 2017) — Paras 6-9 (zero liability, limited liability, reversal timelines) and para 12 (burden of proof)

"We will credit you once the investigation finishes"

high likelihood

The bank defers the credit until it has concluded, often well beyond 90 days.

What answers it

The credit within ten working days is expressly independent of the investigation and of any insurance claim the bank may make. And if the complaint is not resolved within 90 days, the bank must compensate you as though it had been decided in your favour.

RBI/2017-18/15 — Customer Protection: Limiting Liability of Customers in Unauthorised Electronic Banking Transactions (6 July 2017) — Paras 6-9 (zero liability, limited liability, reversal timelines) and para 12 (burden of proof)

Where to take it next

  1. Report to the bank on its 24x7 channel, then confirm in writingReport immediately by whatever channel is fastest and obtain the acknowledgment reference; then send a written complaint the same day repeating the reference. Demand the shadow reversal within ten working days and state that the burden of proof is on the bank.Claim directtypically 10 days
  2. Bank's Principal Nodal OfficerEvery bank publishes a grievance-redressal escalation matrix ending with a Principal Nodal Officer. Escalating there is a precondition of the Ombudsman route and often resolves the matter on its own.Internal appealtypically 30 days
  3. RBI Ombudsman (Integrated Ombudsman Scheme, 2021) via the CMS portalFree, online at cms.rbi.org.in, and available once the bank has had 30 days or has rejected the complaint. The Ombudsman can direct the bank to pay the amount plus compensation for loss of time, expenses, and harassment or mental anguish. The compensation ceiling is set by the Scheme and has been revised — check the current figure on the CMS portal.Ombudsmantypically 90 daysofficial page
  4. Consumer Commission under the Consumer Protection Act, 2019File online through the e-Daakhil portal for deficiency in service. The District Commission handles claims up to ₹50 lakh, filing fees are nominal, and you do not need an advocate.Courttypically 270 daysofficial page

Documents

What this regime can produce.

Every one of these is a document you send yourself, in your own name. Duesday never writes to anybody on your behalf and is never anyone’s agent.

The same claim type elsewhere

Card scheme chargeback rules (Visa, Mastercard, American Express, Discover)SCHEMESupranationalparty states varyVisa Core Rules and Visa Product and Service RulesConfidence: mediumPSD2 — unauthorised transactions and direct-debit refunds (Directive (EU) 2015/2366)EUSupranational30 countriesDirective (EU) 2015/2366 (PSD2)Confidence: highNorway — Financial Contracts Act 2020 and FinansklagenemndaNONationalNorwayLov om finansavtaler (finansavtaleloven), LOV-2020-12-18-146Confidence: mediumRussia — Federal Law 161-FZ on the National Payment System and the financial ombudsmanRUNationalRussiaФедеральный закон от 27.06.2011 № 161-ФЗ «О национальной платежной системе», ст. 9Confidence: mediumSwitzerland — Financial Services Act ombudsman affiliation and the Swiss Banking OmbudsmanCHNationalSwitzerlandFinancial Services Act (FinSA / FIDLEG), SR 950.1Confidence: mediumTürkiye — Bank Cards and Credit Cards Law No. 5464 and the Consumer Arbitration CommitteesTRNationalTürkiyeBanka Kartları ve Kredi Kartları Kanunu No. 5464Confidence: mediumConsumer Credit Act 1974 s.75 (and s.75A) — creditor joint and several liabilityGBNationalUnited KingdomConsumer Credit Act 1974, s.75Confidence: highCanada — payment card codes of conduct, provincial consumer protection and OBSICANationalCanadaCode of Conduct for the Payment Card Industry in CanadaConfidence: medium

Other rights in the same countries

India — DGCA Civil Aviation Requirements, Section 3 Series M Part IVINNationalIndiaDGCA CAR Section 3, Series M, Part IV, Paras 1.2, 1.3 and 1.7Confidence: highIndia — India PostINNationalIndiaPost Office Act 2023 and the Department of Posts rules and compensation scheduleConfidence: lowIndia — IRCTC Ticket Deposit Receipt (TDR) refunds for cancelled and substantially delayed trainsINNationalIndiaRailway Passengers (Cancellation of Tickets and Refund of Fare) RulesConfidence: lowIndia — RBI e-mandate framework for recurring paymentsINNationalIndiaRBI circular DPSS.CO.PD.No.447/02.14.003/2019-20 (21 August 2019) — Processing of e-mandate on cards for recurring transactionsConfidence: mediumIndia — representative consumer complaints and s.245 Companies Act class actionsINNationalIndiaConsumer Protection Act 2019, s.35(1)(c) and s.2(5)Confidence: lowIndia — security deposit (Model Tenancy Act 2021 where adopted, otherwise State Rent Acts)INNationalIndiaModel Tenancy Act, 2021Confidence: lowIndia — the Clinical Establishments Act rate-display duty and the consumer forum routeINNationalIndiaClinical Establishments (Registration and Regulation) Act, 2010Confidence: lowIndia — unclaimed deposits (RBI DEA Fund and UDGAM) and unpaid dividends and shares (IEPF)INNationalIndiaBanking Regulation Act 1949, s. 26AConfidence: medium

Does this one reach your facts?

The engine runs every regime that could apply at once and reconciles them, rather than making you guess which page to read.

Not a law firm. Not legal advice. You send it yourself. This page describes a law; it is not advice about your situation and no outcome is promised.