In Leelawati Devi & another -vs- District Cooperative Bank Ltd., the Supreme Court has held that the bank is vicariously responsible for any act done by its employees.
In 2017, the clause 6 of the RBI circular specifies that customer is not liable in case the contributory fraud or negligence or deficiency on the part of the bank, irrespective of whether or not the unauthoried transaction is reported by the customer.
In DCB Bank Ltd -vs- Ajay Kumar Metha, 2024, the complainant have never shared the email-id with anyone and the bank also has not provided any proof against the complainant. Here it is important to notedown that the customer exercises due diligence banks cannot escape from their responsibility.
The NCDRC in M.S. Bakankar -vs- SBI (2023), ordered a total refund to the bank account holder on the ground that the customer is entitled to zero liability and in this case the entire liability has to be borne by the Bank.
The customer needs to be aware of their rights and take necessary steps to ensure the First Information Report is filed. Seeking enforcement of RBI guidelines against the bank by initiating a consumer complaint. If the bank refuses or fail to do so, enforcing even a favourable order poses significant practical challenges.
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