This story is from June 14, 2024

Return to petitioners Rs 76 lakh lost in cyber fraud, HC tells Bank of Baroda

Return to petitioners Rs 76 lakh lost in cyber fraud, HC tells Bank of Baroda
MUMBAI: Observing that a case before it was an example of how innocent persons are becoming victims of cyber fraud, Bombay HC on Thursday relied on a July 2017 RBI circular and directed Bank of Baroda to return to a company Rs 76 lakh it had lost to an online fraud.
The division bench of Justices Girish Kulkarni and F P Pooniwalla held that both the RBI circular and the bank's policy say if a customer reports a fraudulent online transaction in three working days, a customer has zero liability.
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"When the unauthorised transactions occur due to a third-party breach where the deficiency lies neither with the bank nor with the customer but elsewhere in the system and the customer notifies the bank regarding the unauthorised transactions within a certain time frame," HC said.
Hence, the petitioners' liability would be zero as three cyber cell reports noted that the deficiency lay neither with BoB nor with the account holders -the petitioners and petitioners entitled to refund, HC noted.
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Swati Deshpande

Swati Deshpande is Senior editor at The Times of India, Mumbai, where she has been covering courts for over a decade. She is passionate about law and works towards enlightening people about their statutory, legal and fundamental rights. She makes it her job to decipher for the public the truth, be it in an intricate civil dispute or in a gruesome criminal case.

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