Banking · Customer Liability and Cyber Fraud
A bank customer kept a debit card along with a paper slip containing the ATM PIN in a wallet. After the wallet was stolen during an overseas trip, an unauthorized physical swipe transaction was made. The customer reported the incident three days after the transaction occurred. Under RBI guidelines on customer liability in unauthorized electronic transactions, how is this case evaluated?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The bank must reimburse 50% of the lost amount as a mandatory goodwill gesture.
- 2The customer's liability is strictly capped at ₹10,000 regardless of negligence.
- 3The customer is entitled to a full refund because the automated fraud detection system failed to block the transaction.
- 4The bank is justified in rejecting the claim because writing the PIN and storing it with the card constitutes gross negligence by the customer.✓
Correct answer
The bank is justified in rejecting the claim because writing the PIN and storing it with the card constitutes gross negligence by the customer.
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