Burden To Prove Customer's Liability In Case Of Unauthorized Electronic Banking Lies Upon Bank: Allahabad High Court

The Allahabad High Court has ruled that the "burden to prove customer's liability in unauthorized electronic transactions lies upon the bank," referencing an RBI Circular dated June 6, 2017. The court emphasized that the bank must demonstrate the customer's fault or negligence for any unauthorized electronic banking transaction to hold the customer liable. If the customer reports the fraud within three working days, they generally bear zero liability. This judgment reinforces customer protection guidelines against cyber fraud and shifts the onus of proof to financial institutions.