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? I have been reading conflicting things online and I would like to understand what Indian law actually says about this, which Act and Section applies, what the realistic timelines and costs are, and what I should be doing right now to protect my position. If the matter can be resolved without litigation I would prefer that route, but I want to know what my rights are before I agree to anything or sign any document.

MyVakeel Legal Desk · Accepted Answer

How do I get a refund for an unauthorised NEFT or IMPS transaction from my account? is governed in India primarily by RBI Circular on Customer Protection - Limiting Liability in Unauthorised Electronic Transactions 2017 and Information Technology Act 2000, Section 43. The short answer is set out below, followed by the practical steps most people in this situation need to take. Read it alongside the specific provisions named, because the exact relief available to you turns on the facts you can prove on paper.

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 to do next: 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.

If the other side has already issued a notice, filed a case or set a deadline, treat the matter as time-sensitive — most remedies under RBI Circular on Customer Protection - Limiting Liability in Unauthorised Electronic Transactions 2017 carry limitation periods, and a delay you cannot explain weakens an otherwise strong case. 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 this practice area.