#unauthorized electronic transactions

The West Bengal State Consumer Commission has ruled that complaints involving alleged unauthorized UPI transactions cannot be summarily dismissed at the admission stage without affording parties a hearing, reinforcing that mere denial of liability is insufficient when factual disputes over fraud and lack of OTP sharing exist. This sets a critical precedent for banks and digital payment platforms, ensuring consumers get a fair adjudication when alleging digital financial fraud.

The Calcutta High Court has ruled that banks cannot dismiss customer complaints of unauthorized digital transactions without proving the cardholder’s negligence, as mandated by RBI’s 2017 Zero Liability policy. This sets a binding precedent for all banks to bear the evidentiary burden in fraud disputes, empowering consumers against automated rejections by ombudsman mechanisms.