Axis Bank Ordered to Compensate Rs 53 Lakh to Dhule Vikas Sahakari Bank for Cyber Fraud

In a ruling by the Department of Information Technology, Axis Bank has been ordered to compensate Dhule Vikas Sahakari Bank ₹1.76 crores with 18% compound interest, ₹50 lakhs for mental anguish, and ₹3 lakhs for legal costs following unauthorized transactions totalling ₹2.06 crores. 

The incident involved 27 fraudulent transactions without OTPs or batch numbers that exploited security lapses in Axis Bank's systems. 

The ruling emphasized violations under Section 43A of the IT Act, 2000, highlighting failures in two-factor authentication and fraud detection mechanisms, underscoring financial institutions' duty to ensure data protection and compliance with security standards.