Parliamentary panel wants banks to compensate customers hit by cyber fraud

A Parliamentary panel on Wednesday suggested that banks should compensate customers hit by cyber fraud pending investigation by various agencies.

The Standing Committee on Finance noted the efforts undertaken by RBI on limiting the liability of customers in unauthorised electronic banking transactions and the guidelines framed for the Digital Banking Units (DBUs) to create awareness among customers on safe digital banking practices.

The hapless customers should not be made to suffer and forced to run from pillar to post for redressal, the panel headed by BJP leader Jayant Sinha said.

"The onus in this regard should thus clearly lie with the concerned bank to compensate the customer straightway pending further investigation in the matter by various agencies," it said.

Whenever digital frauds are reported by the victims, the onus for prompt redressal should be on the concerned bank or financial institution and the customer should not be left in the lurch.

The banking Ombudsman under the aegis of the RBI should play a pro-active and customer-friendly role in this regard, it added.