The Supreme Court has directed banks and financial institutions to compensate victims of digital fraud, observing that they must be held accountable for losses suffered due to lack of due diligence.
The Supreme Court has mandated that banks and other financial institutions should be held responsible for losses incurred by victims of digital fraud. The court's observation comes in light of incidents such as digital arrest scams, where victims are expected to receive compensation equal to the amount lost if the fraud is found to have resulted from a financial institution’s failure to exercise due diligence. A bench comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and V. Mohana will examine the Reserve Bank of India’s proposed Know Your Customer (KYC) Amendment Directions, 2026, which are expected to be notified by 30th of November and made operational by 31st of December.
Source:
Akashvani News
