My ATM card was skimmed at a Visakhapatnam bank machine; who is liable for the lost funds?
GA Asked by Gayatri Rao from India
Quick Answer
ATM skimming is an offence under Sections 419, 420 of the Bharatiya Nyaya Sanhita and Section 66C of the IT Act for identity theft.
Detailed Legal Analysis
ATM skimming is an offence under Sections 419, 420 of the Bharatiya Nyaya Sanhita and Section 66C of the IT Act for identity theft. Report the fraud to the Visakhapatnam police and your bank within three working days to invoke the RBI limited liability framework, which can zero your loss if reported promptly.
The bank bears the burden of proving that the customer was negligent, not the other way around. The Andhra Pradesh High Court has reinforced that banks must secure their ATMs and can be directed to refund with interest where skimming is due to their lax security.
Andhra Pradesh Rent Control Act 1960 consumer fora in Visakhapatnam can award compensation for the harassment and mental agony caused. Preserve the ATM receipt, CCTV request reference and SMS alerts as evidence.
You can also file a complaint with the Banking Ombudsman for a quicker resolution.
Disclaimer: AI-generated for educational purposes only. Does not constitute legal advice. Consult a qualified practitioner.