Unauthorised bank transaction: when you pay nothing (RBI zero liability rule)

Updated 2026-10 · General information, not legal advice.

RBI's customer protection rules say that if an unauthorised electronic transaction happens and you report it promptly, your liability can be zero or limited. The clock starts when the bank tells you about the transaction.

When to use this

• Money was debited by a card, UPI or net banking transaction you did not authorise
• You got an SMS alert for a transaction you did not make
• The bank says you are responsible

Step by step

1. 1

   Block and report at once

   Block the card or app, and report to your bank in writing (email or app) with the transaction details. Note the date and time you reported.

2. 2

   Report within 3 working days

   If the fault is the bank's or a third party's and you report within 3 working days, your liability is zero. Reporting in 4 to 7 working days limits it to a set amount. After that, it depends on the bank's policy.

3. 3

   Ask for the credit

   The bank should credit the amount within the period set by RBI after you report. Quote the circular on customer protection in unauthorised electronic transactions.

4. 4

   Escalate

   If the bank refuses or delays, write to its grievance officer, then file free with the RBI Ombudsman at cms.rbi.org.in. Report fraud on 1930.

Key facts

• Reporting fast matters most
• If you shared your OTP or PIN, the bank may argue the loss is yours; get advice
• Keep every alert and your written report

Download the one-page checklist (PDF) (opens in a new tab)

Common questions

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