|Karnataka High Court
Zero-Liability Clause Enforced - Bank Must Refund Unauthorized E-Banking Debit Reported Within 3 Hours and Pay Compensation : Karnataka HC
Karnataka High Court upheld the consumer commission’s order, directing SBI to credit Rs 1,99,000 to the customer and award Rs 25,000 compensation. The ruling affirms the RBI’s zero-liability circular, requiring banks to reverse unauthorised electronic debits reported within three hours and pay interest for non-compliance. Account-holders benefit from swift redress against e-banking fraud.