If your bank account or UPI/digital payments are misused by hackers or fraudsters, you can get your money refunded if you follow RBI rules and act quickly. Here’s how it works and what you should do.
When the Bank Can Refund Your Money (RBI Rules)
According to RBI’s “Limiting Liability of Customers in Unauthorised Electronic Banking Transactions” guidelines:
Zero Liability (Full Refund)
You get a full refund if:
- The fraud happens due to bank’s mistake or system failure, and
- You report it within 3 working days of receiving the alert or noticing the fraud.
In such cases:
- The bank must give a provisional refund within 10 working days, even if the investigation is not completed.
- Final settlement must be completed within 90 days.
Limited Liability
You may have to bear some loss if:
- You report the fraud after 3 working days but within 7 working days.
The deduction amount depends on your account type and bank policy.
No Refund
If you report after 7 working days, the refund depends completely on the bank’s internal policy. You may lose the entire amount.
What To Do Immediately (Step-by-Step)
If you notice a suspicious or unauthorized transaction:
- Contact Your Bank Immediately
Report the fraud through phone, SMS, bank app, customer care, or visit the branch. - Register a Formal Complaint
Ask for a complaint number or acknowledgment. - Ask for “Provisional Credit”
Bank must temporarily refund your amount within 10 working days (as per RBI rules). - Block Your Payment Tools
Ask the bank to block your card, net banking or UPI if necessary. - If Bank Delays or Refuses Escalate
Approach the Bank Grievance Department, then the Banking Ombudsman if unresolved. - Report Cybercrime
File a complaint with the police or cybercrime department if needed.
Why RBI Refund Rules Are Important
- They protect innocent customers from fraud losses.
- They force banks to strengthen their security.
- They ensure the victim gets temporary financial relief quickly.
- They create a clear system of accountability.
Your Rights & Responsibilities
You Must:
- Report fraud as soon as possible.
- Save SMS, Bank alerts, Screenshots, Complaint numbers.
- Avoid sharing OTP, PIN, passwords, CVV, or banking details with anyone.
- Use strong passwords and avoid banking on public Wi-Fi.
Banks Must:
- Provide easy ways to report fraud.
- Send alerts for every electronic transaction.
- Provide provisional refund if you report within 3 days.
- Complete investigation within 90 days.
Final Advice: Act Fast, Stay Alert
Cyber frauds are growing, but RBI rules protect you Only if you act quickly.
Monitor your bank account regularly, keep alerts ON, and report immediately if something looks suspicious. Fast reporting increases your chance of getting your money back.
