Unauthorized Credit Card Transaction in India — How to Dispute & Get Refund (2026)
Unauthorized Credit Card Transaction — What to Do Immediately
If you see a transaction on your credit card statement that you did not authorise, act immediately. Indian banking regulations (RBI Circular RBI/2017-18/15) protect you — your liability may be zero if you report it promptly.
Your RBI-Mandated Zero Liability Rights
Under RBI's Customer Protection – Limiting Liability of Customers in Unauthorised Electronic Banking Transactions (2017), your liability for unauthorized transactions is:
| Fault | Reporting Timeline | Your Liability |
|---|---|---|
| Bank's negligence / third-party breach (not your fault) | Any time after you notice | Zero |
| Third-party fraud (no fault on your part) | Within 3 working days | Zero |
| Third-party fraud (no fault on your part) | 4–7 working days | ₹5,000 – ₹25,000 (capped by account type) |
| Your own negligence (shared password, OTP theft) | Any | Partly/fully borne by you |
Step 1 — Report to Your Bank Within 24 Hours
Call your bank's 24x7 helpline immediately. Report the unauthorized transaction. Request:
- Blocking / hot-listing the card
- Written acknowledgement of your complaint (ticket/reference number)
- Provisional credit to your account within T+10 days (RBI mandates this for clear fraud cases)
Also report via: bank's app, email to customer care, and visit your branch if needed.
Step 2 — File an FIR (Police Complaint)
File an FIR at your nearest police station under the Information Technology Act (Section 66C — identity theft, Section 66D — cheating by personation using computer). Alternatively, file online at cybercrime.gov.in. An FIR copy strengthens your case significantly with the bank and any subsequent legal action.
Step 3 — Raise a Chargeback
Formally raise a chargeback request with your bank in writing. A chargeback is a mechanism where the bank disputes the transaction with the merchant's bank (via Visa/Mastercard/RuPay network). Banks must resolve chargebacks within 45–90 days. Provide:
- Transaction date, merchant name, and amount
- Statement that you did not authorise this transaction
- FIR copy (if filed)
- Any fraud-related evidence (phishing email, fake SMS, etc.)
Step 4 — Send a Legal Notice to the Bank
If the bank delays the provisional credit or chargeback resolution beyond RBI timelines, send a legal notice to the bank's Principal Nodal Officer citing RBI Circular RBI/2017-18/15 and demanding: (1) immediate provisional credit, (2) investigation completion, and (3) compensation for delay. Lawly can generate this notice in minutes. Banks typically escalate your file immediately upon receiving a legal notice.
Step 5 — RBI Integrated Ombudsman
If the bank refuses to credit you despite your complaint, file with the RBI Integrated Ombudsman at cms.rbi.org.in. RBI can order the bank to refund the full amount plus interest plus compensation for mental agony (up to ₹1 lakh). This is free, online, and resolves within 30–90 days typically.
Key Banks — Credit Card Fraud Helplines
- HDFC Bank: 1800-202-6161 (24x7 card block)
- ICICI Bank: 1800-1080
- SBI Card: 1860-500-1290
- Axis Bank: 1860-419-5555
- Citibank / Axis Citi: 1800-210-2484
- American Express: 1800-419-0888
What If You Fell for a Phishing Scam?
Even if you inadvertently shared your OTP (contributing to the fraud), RBI guidelines say: if the fraud arose due to a security system failure of the payment ecosystem (not purely your negligence), you may still have partial or full protection. File a complaint, provide all evidence of the phishing attempt, and escalate via RBI Ombudsman if the bank refuses.
Need to send a legal notice?