SC pulls up RBI over cyberfrauds, seeks strict liability for losses

What happened: The Supreme Court questioned why banks should not be held liable for customer losses in cyberfrauds, especially when bank employees are involved, and told banks to act as a protective umbrella for customers. Key numbers: Attorney general said digital arrest cases fell about 50% versus last year. Why it matters: The attorney general opposed a strict liability rule, saying bank liability should be addressed by the RBI. The court pressed RBI on safeguards while some bank employees are allegedly involved in account misuse.

The Supreme Court questioned why banks should not be held liable for customer losses in cyberfrauds, especially when bank employees are involved, and told banks to act as a protective umbrella for customers.

The attorney general opposed a strict liability rule, saying bank liability should be addressed by the RBI. The court pressed RBI on safeguards while some bank employees are allegedly involved in account misuse.