Reference

RBI Zero Liability Policy — What It Actually Covers

Knowing this rule before you need it can be the difference between recovering your money and losing it — reporting speed matters more than almost anything else.

What the rule says

Under RBI's 2017 circular on customer protection, if an unauthorized electronic transaction happens due to a third-party breach or the bank's own negligence — and you report it within 3 working days of receiving the transaction alert — you have zero liability, regardless of the amount involved. The bank is required to reverse the amount to your account, typically within about 10 working days.

What happens if you report later

If you report between 4 and 7 working days after the alert, your liability becomes limited — typically somewhere between ₹5,000 and ₹25,000 depending on your account type, rather than the full amount. Beyond 7 working days, liability is determined according to the bank's own board-approved policy, which varies by institution.

Important nuance for scam victims: This rule is built around transactions that were genuinely unauthorized — meaning someone else initiated them without your involvement, such as through a hacked system or stolen card. If you were tricked into entering your own PIN or approving a transaction yourself (as in most UPI social-engineering scams covered on this site), banks may treat this differently and dispute liability, arguing the transaction was technically authorized by you. This is a genuinely contested area, and outcomes vary by bank and case. Reporting immediately and filing formally still gives you the best possible chance, but it isn't an automatic guarantee in scam scenarios the way it is for a clearly unauthorized/hacked transaction.

What to actually do

Report to your bank the moment you notice anything suspicious — don't wait to "be sure"
Also call 1930 and file at cybercrime.gov.in — these create an official record independent of your bank
Get a written acknowledgment or reference number from your bank for your complaint
If your bank denies your claim, you can escalate to the RBI Banking Ombudsman after 30 days without resolution

Where to start

See the full step-by-step order on our "I've Been Scammed" page, and the complete list of numbers and portals on our reporting page.

This article is general awareness information, not legal advice. See our disclaimer for details.