Background
The victim alleged that the money was withdrawn from her account by a hacker. The victim believed that the hacking was done due to a mistake in the bank’s electronic banking system.
Guideline by the court
The bank could not present any such evidence, which showed that the credit card of the victim was stolen.Hence, the National Consumer Disputes Redressal Commission (NCDRC) held that Banks should compensate account holder if customer loses money due to online fraud.
Reasoning
As per the report of RBI-
1. If there is negligence or mistake on the part of the bank, then the entire loss will be borne by the bank.
2. On the other hand, if the fraud is due to the negligence of the customer, then the customer will have to suffer the loss.
3. In a situation where it is neither the fault of the customer nor the fault of the bank, then if the customer lodges a complaint with the bank within 3 working days of the fraud, then the customer will not be responsible for the fraud.
