A recent Delhi North District Consumer Commission ruling in Rakesh Kumar v. SBI Cards & Payment Services has established important precedent for credit card fraud victims. According to reports from Business Standard, Kumar's card incurred ₹15,000 in unauthorised charges on May 23, 2024, while he was purchasing butter through an online offer using the 'Big Bazaar' name. The court found that SBI Cards & Payment Services failed to establish customer negligence, provide provisional credit on time, or resolve the complaint within 90 days. The commission ordered the issuer to refund ₹15,000 with 7% annual interest and pay ₹10,000 as compensation.
As reported by Business Standard, disputed credit card charges fall into two categories: unauthorised payments occurring without cardholder consent due to fraud or compromised card details, and legitimate disputes involving duplicate billing, incorrect amounts, or failed deliveries. RBI rules require issuers to explain disputed bills within 30 days, while merchant-related dispute deadlines vary by issuer terms. For unauthorised transactions, customers must immediately alert issuers, block cards, and report to the National Cyber Crime Reporting Portal (call 1930). Reporting within three working days generally results in zero liability, while reports made within four to seven working days attract capped liability.
According to Business Standard reports, issuers must provisionally credit disputed amounts within 10 working days of fraud reporting, with the credit reducing outstanding balances and restoring available credit limits. The fraud complaint and customer liability must be decided within 90 days or sooner if issuer policy requires it. RBI prohibits charges on disputed transactions until issuers resolve disputes, with interest and late fees not accumulating during investigations. Recovery agents cannot intimidate customers during pending investigations.
As reported by Business Standard, preserving evidence is crucial in credit card fraud disputes. Customers should retain transaction alerts, statements showing disputed charges, call logs, complaint reference numbers, and screenshots of online complaints. Following telephone complaints, customers should send emails summarising conversations to create dated records. RBI's July 6, 2017 circular establishes that banks bear the burden of proving customer negligence, with liability depending on fault determination and reporting timeline.
According to Business Standard reports, customers have significant protections during dispute resolution periods. RBI prohibits charges on disputed transactions until issuers resolve disputes, with interest and late fees not accumulating during investigations. The issuer must withhold reporting defaults related to disputed amounts until disputes are settled. Compensation must be paid under RBI's customer-liability rules if liability remains undetermined after 90 days. These protections ensure customers are not penalized for disputing fraudulent charges while the investigation proceeds.
