The Supreme Court's firm stance on digital fraud is an important step towards protecting citizens in an increasingly vulnerable digital economy. The Court’s insistence that banks compensate victims when fraud occurs due to their staff’s failure to exercise due diligence sends a strong message. Bank staff cannot escape responsibility when customers lose their hard-earned money through cyber fraud, particularly when negligence, delayed intervention or failure to follow security protocols is established. It is not enough for banks to advise customers against sharing OTPs and passwords while ignoring shortcomings in their own systems. Employees must be trained to identify suspicious transactions, respond promptly to complaints and prevent fraudulent withdrawals wherever possible. Also, the RBI must enforce strict accountability and ensure time-bound compensation for victims of proven institutional negligence. Banks must protect customers' deposits, not merely disclaim responsibility when their money disappears. Equally important is better coordination between banks, telecom operators and cybercrime authorities. Even PM Modi has expressed deep concern over the growing menace of cyber criminals. Technological progress must be accompanied by accountability and effective safeguards.
GREGORY FERNANDES, Mumbai
