This is Part 10 of Money Basics for Indians, our 12-part series on the everyday money systems every Indian should understand. New here? Start with Part 1: Bank Accounts and Deposit Insurance, or read the previous part, Part 9: Taxes for Freelancers.
When something goes wrong with your bank, it can feel like you have no choice but to wait. In fact, the Reserve Bank of India gives customers clear rights, fixed timelines and a free complaint system.
Unauthorised electronic transactions
If money leaves your account through a fraud you did not cause, your liability depends on how quickly you report it:
- Within 3 working days: Zero liability when the fraud happened because of the bank or a third-party breach.
- Within 4 to 7 working days: Your liability is capped at an amount set by account type, from ₹5,000 to ₹25,000.
- After that: It depends on your bank's board-approved policy.
- If you shared your OTP or PIN, you may bear the loss until you report it.
Banks must credit the disputed amount to your account (a "shadow reversal") within 10 working days of your report while they investigate. So report fraud immediately to your bank and on the 1930 helpline. See Part 11: Financial Scams and Digital Arrest and UPI fraud protection.
Failed transactions
- ATM did not dispense cash but your account was debited: The bank must reverse it within five days, or pay you ₹100 for every day of delay.
- UPI payment debited but not credited: Usually reversed within one working day, with ₹100 a day compensation after that.
- Compensation should be paid automatically, without you having to ask.
Loans
- Banks cannot charge foreclosure or prepayment penalties on floating-rate loans taken by individuals for non-business purposes.
- After you repay a loan, the lender must return your original property documents within 30 days, or pay ₹5,000 a day for the delay.
- Lenders must tell you about rate changes and their impact on EMI or tenure. See Part 4: Repo Rate, EMIs and FD Rates.
How to complain
- Complain to your bank first, through its grievance portal, branch or email, and note the complaint number.
- If the bank does not reply within 30 days, or you are unhappy with the reply, file a complaint with the RBI Integrated Ombudsman at cms.rbi.org.in. It is free and can be done online.
- File within one year of the bank's reply.
- You can also call the RBI contact centre on 14448 for help.
Other rights worth knowing
- Clear disclosure of all fees and charges before you agree to them.
- Protection from mis-selling: banks cannot force you to buy insurance or investments to get a loan or open an account.
- A basic zero-balance savings account on request. See Part 1: Bank Accounts and Deposit Insurance.
This article is for general information and education only. It is not financial, tax or legal advice. Rules, rates and limits change often, so check official sources such as the RBI, the Income Tax Department or India Post, or speak to a qualified adviser, before acting.
Next in the series: Part 11: Financial Scams and Digital Arrest.
