Wire · regulatory
Bank Cannot Blame Customers for Unauthorised UPI Debits, Kerala Panel Rules
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Fusion42 · 13 August 2026 · Fusion42 review
A Kerala consumer disputes commission ruled that Federal Bank must refund a customer ₹9,854 lost to unauthorised UPI transactions from a fraudulent scratch card scam and pay compensation and legal costs. The ruling emphasises that banks cannot blame customers solely for use of correct UPI credentials without credible proof of negligence, reinforcing RBI's zero-liability framework and shaping liability in digital payment fraud cases across India.
This Wire brief sits within Fusion42's coverage of Fintech.
◆ ◆ The Wire takeaway
Digital payment founders must prepare for stronger regulatory protection against customer liability in UPI fraud, shifting risk back to banks and opening demand for fraud detection and dispute resolution services.
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1 source · 13 Aug 2026
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