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Bombay High Court Orders HDFC to Refund Rs 38.04 Lakh in SIM-Swap Fraud Case

The bench applied RBI’s 2017 zero-liability rule for unauthorised transactions.

Overview

  • HDFC Bank must return Rs 38.04 lakh within eight weeks with 6% interest, which rises to 8% if it misses the deadline.
  • The court found the customer’s mobile number was swapped by fraudsters, so one-time passwords and SMS alerts never reached him.
  • Three beneficiaries were added and the net-banking limit was raised from Rs 4 lakh to Rs 40 lakh, after which eight transfers drained the money in 41 minutes.
  • The bank did not prove that alerts were delivered or that the customer was negligent, triggering zero liability under RBI guidance.
  • HDFC’s internal records showed the disputed activity came from IP addresses in Chennai, not the customer’s usual IP, supporting that he did not initiate the transactions.