Bank Held Liable as SC Finds No Customer Negligence in Fraudulent Transactions

State Bank of India Vs Pallabh Bhowmick & Ors (Supreme Court of India) In this case, the Supreme Court upheld the High Court’s finding that a series of online transactions carried out on 18.10.2021 from the customer’s bank account were entirely unauthorized and fraudulent, and that no negligence on the part of the account holder was established. Agreeing with the High Court’s reasoning, the Court emphasized that Clauses 8 and 9 of the RBI Circular dated 06.07.2017 clearly mandate that where a customer is not negligent, the bank bears full liability for unauthorized electronic transac...