How do I get a refund for an unauthorised NEFT or IMPS transaction from my account?

Question

Money was transferred out of my account through IMPS without my knowledge and the bank is delaying my refund. What is my right under RBI rules? What I am unsure about is the procedure — where the application goes, what it costs, and how long unauthorised transaction refund matters usually take. A plain explanation of the steps, in order, would help more than a general answer.

MyVakeel Legal Desk · Accepted Answer

The law that applies to unauthorised transaction refund here is RBI Circular on Customer Protection - Limiting Liability in Unauthorised Electronic Transactions 2017 and Information Technology Act 2000, Section 43. The detail below matters, because RBI Circular on Customer Protection - Limiting Liability in Unauthorised Electronic Transactions 2017 draws the line differently depending on what your documents show.

RBI's 2017 circular fixes zero liability for the customer if the unauthorised transaction occurs due to a bank's system deficiency or third-party breach not involving customer negligence.

Limited liability applies if the customer reports the transaction within 3 to 7 working days of receiving communication, capped at Rs 5,000 to Rs 25,000 depending on account type.

The bank must credit the disputed amount to the customer's account within 10 working days of the complaint, even before completing its own investigation, provided the claim is not attributable to customer negligence.

Section 43 of the IT Act allows a claim for compensation against any person who accesses a computer system without authorisation causing wrongful loss.

Delay by the bank beyond 90 days in resolving such complaints results in the full amount being credited regardless of the degree of customer liability.

What this means for you: 1) Report the unauthorised transaction to the bank immediately via phone, email and written complaint with timestamps; 2) Block your card or online banking access to prevent further unauthorised transactions; 3) Insist the bank provisionally credits the amount within 10 working days as per RBI's circular; 4) Escalate to the RBI Ombudsman if the bank denies liability without proper investigation.

Where the facts are disputed, what usually decides a unauthorised transaction refund matter is the paper trail — dated complaints, acknowledgments and written replies under RBI Circular on Customer Protection - Limiting Liability in Unauthorised Electronic Transactions 2017. You can post the details on the MyVakeel forum for a practising advocate to review, or book a paid consultation with a Bar Council verified lawyer in banking law.