Bank frauds are at an unprecedented high in India and are scamming people while breaking the trust with our financial institutions. Whether it’s a phishing link, a forged cheque, or some fake loan sanctioned in your name, the effects can range from disruptive to devastating.
This guide will assist you in framing your response to bank fraud, including filing a police complaint, understanding the associated legal provisions, how to protect innocent victims from further injury in such events.
What is Bank Fraud in India?
Bank fraud means that a bank account or the money or information in a bank account has been stolen using some form of deception. Bank fraud itself can take digital forms, physical forms, or may involve an internal fraud around bank accounts.
Common Types of Bank Frauds
- Unauthorized UPI or card transactions
- Phishing emails or fake websites
- Credit card cloning or ATM skimming
- Loans taken using fake documents
- Forged cheques or altered signatures
Real Case Snapshot
“One of the clients received an SMS about a ₹5,000 debit via UPI, but he hadn’t initiated any transaction. He called the bank immediately, but they blamed me for sharing OTP. He hadn’t. The loan scam turned out to be a QR code scam.”
Innocent victims can be caught up in fraud, and in many cases, the victims have done nothing wrong. Thus, it is critical that a fraud is reported quickly.
Step-by-Step Guide: How to Report Bank Fraud to the Police
Step 1: Notify the Bank Within 3 Days
As per the RBI guidelines, if you report the fraud within 3 working days, you hold zero liability.
Call customer care or visit the branch to block your account and freeze transactions.
Step 2: You need to file a Written Complaint with Your Bank
Include:
- Your name, account number
- Date and time of fraud
- Transaction ID or reference number
- Screenshots or messages
- Any suspicious emails or calls
Get a written acknowledgment, this is important for follow-ups.
Step 3: File a Police Complaint or FIR
You can file:
- At your local police station (FIR under IPC sections like 420/BNS sections like 318 (4))
- At the Cyber Crime Cell (for digital frauds)
Carry:
- A copy of your bank complaint
- Transaction proof
- Screenshots or call recordings
- Identity documents
Lalita Kumari v. Govt. of U.P. (2014): FIR is mandatory if a cognizable offence is disclosed.
Step 4: Register Complaint on Cybercrime Portal
Visit: www.cybercrime.gov.in. Upload all evidence and get a complaint ID for tracking.
Step 5: File with RBI Ombudsman (If Bank Is Unhelpful)
If your bank doesn’t resolve the issue within 30 days, escalate it to
www.cms.rbi.org.in under the RBI Integrated Ombudsman Scheme, 2021
How to Write a Police Complaint for Bank Fraud?
Include:
- Your name, address, contact
- Bank details and branch name
- Incident date and transaction ID
- Description of fraud (e.g., “UPI withdrawal without OTP”)
- Evidence (screenshots, bank response)
- Request to file FIR as per IPC 420/BNS 318 (4) and IT Act 66D
Sample Excerpt:
“One of the clients, a resident of Delhi, report that ₹20,000 was fraudulently debited from his HDFC account via UPI on 10 July 2025. He did not share any kind of OTP or password. Please register an FIR under IPC 420/BNS 318 (4) and IT Act 66D.”
Landmark Case Laws That Protect You
- In the pre-paid case of PNB v. Union of India (2018), the ₹11,000 crore Nirav Modi scam was brought on by the falsification of documents pertaining to SWIFT use.
- Lalita Kumari v. Govt. of U.P (2014) involved the rules which dictate that police must register an FIR for offences cognizable by Rights.
- Axis Bank v. Dr. Subramaniam (2019) involved the banks are fiduciaries and have a duty to protect a customer’s funds.
- ICICI Bank v. S.S. Hospital (2007) involved the failure to detect forged documents equals bank negligence.
- SBI v. R.B. Sharma (2004) involved the payments via forged cheques are unauthorized and not valid.
What If the Bank Is at Fault? Can You Sue?
Yes. If the bank:
- Ignores suspicious transactions
- Issues credit or loans negligently
- Doesn’t act on your complaint
You can file a complaint as per the Consumer Protection Act, 2019.
Landmark Case: National Insurance Co. Ltd. v. Sehtia Shoes (2005): Banks must act diligently to protect customers.
Legal Penalties for Bank Fraud in India
| Section | Offence | Punishment |
| IPC 420/BNS 318 (4) | Cheating | Up to 7 years + fine |
| IPC 468/BNS 336 (3) | Forgery for cheating | Up to 7 years |
| IPC 471/BNS 340 (2) | Use of forged documents | Same as forgery |
| IT Act 66C | Identity theft | Up to 3 years + ₹1 lakh fine |
| IT Act 66D | Online impersonation fraud | Up to 3 years + ₹1 lakh fine |
Expert Tips to Strengthen Your Case
- File your complaint within 3 days to claim RBI protection
- Keep a copy of every complaint, email, screenshot
- Use RTI applications if police or bank delays action
- If police refuse to file FIR, approach the Magistrate under Section 156(3) CrPC/Section 175 BNSS
- Talk to a cybercrime or banking fraud advocate if the issue escalates
Conclusion
Bank frauds are serious, but so is your right to justice. Don’t ignore a suspicious SMS. Don’t rely only on customer care, escalate. Don’t wait days, take action immediately. Timely complaint, proper documentation, and the right legal approach can help recover your money and hold fraudsters, and even negligent banks accountable.
One can talk to lawyer from Lead India for any kind of legal support. In India, free legal advice online can be obtained at Lead India. Along with receiving free legal advice online, one can also ask questions to the experts online free through Lead India.
FAQs
1. Can I still get my money back if I reported the fraud after 3 days?
You may still be eligible for partial recovery, but RBI’s zero liability policy applies only if reported within 3 working days. Beyond that, the liability shifts depending on negligence and delay.
2. Is the bank responsible for refunding money lost in fraud cases?
Yes, if the bank fails to secure your account (e.g., didn’t alert you about suspicious activity), it may be held liable under RBI norms and the Consumer Protection Act, 2019.
3. How long does it take to resolve a cyber fraud complaint in India?
Although deadlines differ, the RBI allows the bank 30 days to address grievances. Police or cyber cells may take longer depending on the case’s complexity and digital forensics.
Talk to a Lawyer