Reporting Cyber Fraud: Timelines and Your Liability

Here is a general overview of reporting cyber fraud under Indian law.

How quickly you need to report an unauthorised transaction, and how the RBI's liability rules are set to change from 1 January 2027.

The legal position

For transactions before 1 January 2027, RBI's 2017 rules apply: zero liability for the customer if the unauthorised transaction is reported within 3 working days, and limited liability if reported within 4-7 working days.

Generally speaking, for transactions from 1 January 2027, under RBI's Amendment Directions (24 Jun 2026), the customer has zero liability for bank negligence, or for a third-party breach reported within 5 calendar days. The exact treatment of a report made later than 5 days is not clearly specified in the new rules.

A one-year compensation pilot allows one-time compensation of 85% of the net loss, capped at ₹25,000, for losses up to ₹50,000, where the customer reports to NCRP/1930 and the bank within 5 days; the bank must prove negligence, and resolution should take 45 days (60 for cross-border transactions).

Common pitfalls

Some common mistakes are worth flagging.

• Delaying a report because you are embarrassed or unsure what happened — the clock on your liability protection starts from when the fraud occurred, not when you report it.
• Reporting only to the bank and not to 1930/cybercrime.gov.in, or vice versa — both channels matter for different protections.
• Assuming the compensation pilot applies automatically — it is capped, time-limited, and conditional on timely reporting to both the bank and the cyber helpline.

For related reading, see Digital Arrest Scams: How They Work and What the Supreme Court Has Directed and Where to Report Cyber Fraud: Portals, Helplines, and e-Zero FIR.

If you would like this looked at against your own facts, a consultation is a reasonable next step.

This page is general information about the law in India and is not legal advice. The position can vary with the facts, so it is worth getting advice on your specific situation.