Banks to pay Rs 1.06 crore to customers for online banking frauds

A cyber crime court has directed six banks - Central Bank of India, Royal Bank of Scotland, Punjab National Bank, IndusInd Bank, Yes Bank, State Bank of India and Vodafone & SBI Cards asked to pay out Rs 1.06 crore compensation to customers.

These customers have been victims of various online banking frauds in the past two years, but banks had held customers responsible for their accounts being compromised.

the Banking Codes and Standard Board of India (BCSBI) unit has issued a Code of Bank's Commitment wherein customers of such fraud will be liable to the extent of Rs 10,000 only and the bank has to make good the rest of the amount.

SBI which has been directed to pay Rs 40 lakh. PNB, IndusInd and Yes Bank have been asked to pay Rs 20 lakh, Rs 5 lakh and Rs 3 lakh respectively. Central Bank and Royal Bank of Scotland were asked to pay Rs 8 lakh each. compensation of Rs 1.3 lakh and Rs 1.4 lakh to be paid by SBI Credit Card and SBI's International Debit Card for frauds committed upon users. Vodafone was asked to pay a compensation of Rs 20 lakh

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