# Make online banking robust, Karnataka HC tells banks in fraud case 2026-08-12T18:19:43+00:00 | Governance | Indian Opinion Desk Corroboration: 2 independent outlets The Karnataka High Court has dismissed a petition by the State Bank of India (SBI) challenging a consumer forum order to pay Rs 1.99 lakh to a Bengaluru customer whose account was fraudulently debited. The court directed banks to make their online banking systems 'robust, foolproof and impossible to be misused', noting that public money is at stake. The customer, Pradosh Kumar, had downloaded a fraudulent app on July 19, 2022, leading to unauthorised debits of Rs 1.99 lakh and Rs 25,000. The bench cited a July 2017 RBI circular that holds banks liable for unauthorised electronic transactions under the 'zero liability clause', provided the customer reports the fraud within the stipulated period. The customer had emailed the bank within three hours. The district, state, and national consumer commissions had all ruled against SBI. The High Court upheld those orders. ## Coverage - deccanherald.com - newindianexpress.com Tags: consumer protection, Karnataka High Court, online banking fraud, RBI zero liability, SBI Canonical: https://indianopinion.org/karnataka-hc-banks-liable-for-unauthorised-online-transactions/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/karnataka-hc-banks-liable-for-unauthorised-online-transactions/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.