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IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR
ANOOP KUMAR DHAND
Rakesh Totuka, S/o. Lt. Sh. Prakash Chand Totuka – Appellant
Versus
Department of Financial Services, Through the Secretary, Ministry of Finance – Respondent
ORDER :
For convenience of exposition, this order is divided in the following parts: -
| INDEX | |
| (1) | Prelude |
| (2) | Factual matrix of the case |
| (3) | Submissions on behalf of the petitioner |
| (4) | Submissions on behalf of the respondent |
| (5) | Analysis, Discussions and Judgments referred |
| (6) | Conclusion |
| (6) | Directions |
Prelude:-
1. Over the past few years, there has been a noticeable rise in cyber crimes and frauds globally, with India witnessing thousands of innocent people falling victim to these scams. Many have lost substantial amounts of their hard-earned money to frauds carried out via internet. The surge in digital scam cases underscores a troubling trend, with individuals from all walks of life increasingly being targeted.
In the age of rapid digital evolution, digital scams have emerged as one of the most insidious forms of cyber crimes.
2. As online banking services have grown in popularity, the incidents of online banking fraud have also increased. Among the most widespread cyber crimes are phishing scams targeting bank customers. Cyber criminals steal login credentials to access bank accounts and harvest credit and debit card information for financial gain, leading to significant losses for the victims.
3. O
The court affirmed that customers have zero liability for unauthorized transactions if reported within three working days, as per RBI guidelines, and found the bank liable for failing to secure the a....
Fraudulent transaction of Bank - On completion of investigation if it is established that the fraud took place purely due to the negligence or deficiency of service on the part of the respondent no. ....
Banks must prove customer negligence to deny liability for unauthorized transactions; mere downloading of an app does not constitute negligence.
Banks must ensure robust security measures to protect customers from cyber fraud, and failure to do so may result in liability for unauthorized transactions.
Writ under Article 226 maintainable against private scheduled banks to enforce RBI guidelines; customer zero liability in unauthorized electronic transactions from third-party breaches like SIM swapp....
The court established that under the RBI Circular, customers are entitled to zero liability for unauthorized transactions if reported within three working days, and limited liability if reported with....
The burden of proof in unauthorized electronic banking transactions lies with the bank, but customers can be liable if they were negligent, as shown in deliberate self-initiated transactions.
Limited Liability of a Customer - Unauthorized aforesaid banking transactions in the bank account of petitioner as per Clause VI of the aforequoted policy of R.B.I., petitioner is entitled to zero li....
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