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While transferring money online has become incredibly easy these days, the risk of cyber fraud has risen correspondingly. Cybercriminals often swindle people out of vast sums—ranging from lakhs to crores of rupees—using phone calls, messages, or fake links. Fraudsters frequently ensnare victims by posing as relatives, police officers, bank staff, or officials responsible for KYC updates. In other instances, money is extorted through intimidation or threats of legal action.

This raises a crucial question: if you fall victim to cyber fraud, who covers the loss? Will the bank reimburse the money siphoned from your account? There is no simple answer to this, as the likelihood of a refund depends largely on the nature of the fraud and the customer's role in the transaction. Let us examine the regulations governing cyber fraud cases and the circumstances under which you might recover your money.

**When is the bank liable?**
If you did not initiate the transaction yourself and there was no negligence on your part, the bank is required to compensate you for the loss in accordance with RBI regulations.

Under the Reserve Bank of India (RBI) guidelines and the customer protection framework, eligibility for a refund depends on how quickly the fraud is reported and where the fault lies.

If the fraud resulted from the bank's negligence, you bear no liability. In such cases, if you report the scam within five calendar days, you may be entitled to limited compensation or a transaction reversal.

**When does the bank not provide compensation?**
There are instances where the bank does not compensate you for the fraud or loss, such as:

If a cybercriminal deceives you into transferring the money yourself—for example, via UPI payments or bank transfers—the bank is not held liable. For instance, if you receive a call from a cybercriminal and share your OTP, UPI PIN, or bank details with them, the bank is unable to assist you in such a situation, nor does it guarantee the recovery of the entire amount.

Therefore, avoid falling for the tactics of online cybercriminals. If an erroneous transaction occurs, immediately inform a bank official so that you can protect yourself from fraud.

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