My ATM card was skimmed at a Purnia bank machine; who is liable for the lost funds?

Detailed Legal Analysis

In the event of ATM card skimming at a bank machine in Purnia, the liability for the lost funds primarily falls on the bank, provided the customer has followed all necessary security protocols.

Under Indian law, particularly the Payment and Settlement Systems Act, 2007, and the guidelines set forth by the Reserve Bank of India (RBI), banks are responsible for ensuring the security of their ATM machines. Here are the key points regarding liability and the steps you should take:

• Responsibility of the Bank: According to the RBI's circular on customer liability, banks are liable for any unauthorized transactions arising from card skimming, provided the cardholder has not shared their PIN or failed to report the loss in a timely manner.
• Cardholder's Duty: The cardholder must exercise reasonable care in safeguarding their card and PIN. This includes:
• Regularly monitoring account statements for unauthorized transactions.
• Not sharing the PIN or card details with anyone.
• Immediately reporting any loss or theft of the card to the bank.

In cases of skimming, the following steps should be taken:

• Report the Incident: Immediately inform your bank about the skimming incident. This can often be done via a helpline or through the bank's mobile app.
• Block the Card: Request the bank to block your ATM card to prevent further unauthorized transactions.
• File a Complaint: Lodge a formal complaint with the bank regarding the unauthorized transaction. Ensure you get a reference number for future follow-ups.
• File a Police Report: In some cases, it may also be advisable to file a police report regarding the skimming incident. This may assist in the investigation and recovery of lost funds.
• Follow Up: Keep track of your complaint with the bank and follow up regularly until the issue is resolved.

Relevant laws that govern these issues include:

• Payment and Settlement Systems Act, 2007: This act regulates the payment systems in India and provides a framework for disputes arising from electronic transactions.
• Consumer Protection Act, 2019: This act protects consumers from unfair trade practices, including inadequate service by financial institutions.

In conclusion, while the bank is primarily liable for losses due to skimming, it is crucial for cardholders to act promptly and responsibly to mitigate losses and aid in recovery.