Supreme Court Holds SBI Liable for Fraudulent Transactions

The Supreme Court upheld SBI's liability for ₹94,204.80 lost in fraudulent transactions reported by a customer within 24 hours. The fraud occurred when the customer downloaded an app following a scam call. 

The Court emphasized banks' duty to safeguard accounts using advanced technology, citing clauses 8 and 9 of RBI's 2017 guidelines that impose "zero" liability on customers for third-party breaches if reported promptly. Rejecting SBI's claim of customer negligence, the Court noted no sharing of sensitive data like OTPs or MPINs.

While urging vigilance from account holders, it affirmed banks' responsibility to prevent unauthorized transactions. SBI’s appeal was dismissed.