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In State Bank of India v. Hare Ram Singh & Anr., the Delhi High Court examined liability for unauthorised electronic banking transactions and cyber fraud. The Court held that a bank cannot automatically be required to refund money merely because a customer says they did not share an OTP. Liability must be determined by examining customer negligence, bank security, RBI guidelines, and technical evidence. Clicking phishing links or compromising banking credentials may also amount to negligence, making digital and forensic evidence crucial in such disputes. tripakshalitigation.com

Arbitration is an alternative dispute resolution method in which parties appoint an independent arbitrator to decide their dispute outside traditional court proceedings. Governed in India primarily by the Arbitration and Conciliation Act, 1996, it is commonly used for contractual, commercial, construction, partnership, insurance, and business disputes. Arbitration can offer greater flexibility, confidentiality, specialist decision-making, and potentially faster resolution, while the resulting arbitral award is generally binding and enforceable subject to the limited grounds for challenge provided by law.

A mule account is a bank account used to receive, transfer, or withdraw money connected with cyber fraud, sometimes with the account holder’s knowledge and sometimes through deception. Allowing others to use your bank account, ATM card, UPI credentials, or banking access can expose you to account freezes, police investigation, and potential legal liability. To reduce the risk, never rent or lend your account, verify suspicious job or commission offers, protect banking credentials, and promptly report suspected fraud to the bank and cybercrime authorities.