Shared an OTP and Lost ₹3.73 Lakh? Kerala High Court Orders SBI to Refund It in Four Weeks

Updated 21 October 2026 · By Amit Kumar Bansal

The Kerala High Court has ordered SBI to refund ₹3.73 lakh to a retired principal who lost the money after sharing an OTP with a fake “card reactivation” caller in July 2019.

She reported the fraud to the bank and police the same day. The court set aside the Banking Ombudsman’s rejection and held she qualifies for RBI’s zero liability, because SBI never proved she was negligent.

The order is dated 5 October 2026, as reported by LiveLaw and The Financial Express.

The Ruling at a Glance

Point	Detail
Bank	State Bank of India
What went wrong	Fraud reported same day, but the money was never re-credited; Ombudsman rejected her complaint
Award	₹3,73,000 refund within four weeks
Rule enforced	RBI 2017 circular: zero liability if reported within 3 working days

What This Means for You

Speed is your protection. The moment an unknown debit hits your card or account, block it and report it to the bank in writing, then call 1930 or file at cybercrime.gov.in.

Under RBI’s rule the bank must prove you were at fault, not the other way round. If the bank refuses or stays silent for 30 days, complain free at cms.rbi.org.in, and keep the High Court route in mind if the Ombudsman says no.

Based on LiveLaw and Financial Express reports of the 5 October 2026 order. The ruling can be appealed; this is not legal advice.