Legal Notice to Bank for Unauthorised Transaction (UPI Fraud) Format
A UPI fraud notice to your bank is a written demand to reverse an unauthorised electronic transaction and credit the money back to your account. RBI’s customer-protection rules cap or remove your liability when you report promptly or the bank was at fault. Send it after you have reported the fraud to the bank, on helpline 1930 and on the cyber crime portal.
When to send this notice
Use this notice when money left your account through a UPI, card, net-banking or wallet transaction that you did not authorise or that followed a phishing or SIM-swap attack, and the bank has refused or delayed the reversal. Do not use it for a failed or delayed transaction where money has simply not reached the beneficiary. For wrong charges and loan service failures, use the bank deficiency notice instead.
Statutory basis
RBI’s framework on limiting the liability of customers in unauthorised electronic banking transactions began with the circular of 6 July 2017 and is now carried in RBI’s consolidated directions for commercial banks. The Reserve Bank of India (Commercial Banks - Responsible Business Conduct) Third Amendment Directions, 2026, issued on 24 June 2026, revise it for electronic banking transactions undertaken on or after 1 January 2027. In both versions the customer has zero liability where the loss results from the bank’s own deficiency or negligence, and also where a third party breach occurs and the customer reports it within the prescribed window (three working days under the 2017 circular, five calendar days under the 2026 directions). The bank carries the burden of proving that the customer is liable. The bank must reverse eligible amounts without loss of interest to the customer and resolve the complaint within the timelines set by RBI. Customers should also report on the National Cyber Crime Reporting Portal or helpline 1930. A bank is a service provider under the Consumer Protection Act, 2019, so a consumer complaint for deficiency in service is available. If the bank does not resolve the complaint within 30 days or you are not satisfied with its reply, you can approach the RBI Ombudsman under the Reserve Bank – Integrated Ombudsman Scheme, 2026 (in force from 1 July 2026) within 90 days after that. The fraudster’s conduct can amount to cheating under Section 318 of the Bharatiya Nyaya Sanhita, 2023 and, for online personation, Section 66D of the Information Technology Act, 2000.
[ON THE LETTERHEAD OF THE ADVOCATE / ACCOUNT HOLDER]
By Registered Post A/D & Email
Date: [DD/MM/YYYY]
To,
The Branch Manager / Nodal Officer
[Name of Bank], [Branch and Address]
Copy to: The Principal Nodal Officer / Grievance Redressal Officer
Subject: Notice demanding reversal of unauthorised transaction(s) of Rs. [Amount] from Account No. [XXXX] and compensation under RBI’s customer-protection framework.
Sir/Madam,
Under instructions from and on behalf of my client, [Account Holder Name], holder of Account No. [XXXX] with your [Branch] ("my client"), I serve upon you the following notice:
1. That on [DD/MM/YYYY] at about [time], the following unauthorised transaction(s) were debited from my client’s account through [UPI / card / net banking]:
Date and Time | Amount (Rs.) | Reference No. | Beneficiary / Merchant
[___] | [___] | [___] | [___]
2. That my client did not authorise these transactions, did not share any OTP, PIN, password or credential with anyone [or describe the circumstances, e.g. phishing link / SIM swap], and noticed them through [SMS alert / statement] on [date and time].
3. That my client reported the fraud to your bank on [DD/MM/YYYY] at [time] through [call centre / app / branch], complaint reference no. [___], which was within [__] of the transaction. A complaint was also lodged on the National Cyber Crime Reporting Portal / helpline 1930 on [date], acknowledgement no. [___]. [FIR no. ___, if registered.]
4. That under RBI’s framework on limiting customer liability in unauthorised electronic banking transactions, my client is entitled to reversal of the amount without loss of interest, and the burden of proving customer liability lies on the bank. Despite this, you have [not credited the amount / rejected the claim without reasons / not responded].
I therefore call upon you to credit Rs. [Amount] to my client’s account with interest, value-dated to the date of the transaction, and to pay Rs. [Amount] as compensation for harassment, within fifteen (15) days of receipt of this notice, failing which my client shall approach the RBI Integrated Ombudsman and the Consumer Commission and take other proceedings at your risk, cost, and consequences.
[Advocate Name / Account Holder Name]
[Enrolment No. / Contact] Replace every [placeholder] with your own details before use.
How to send this legal notice
From draft to proof of delivery and the next legal step.
Immediately block the card, UPI handle or net banking and report the fraud to the bank in writing, keeping the complaint reference number.
Report on the National Cyber Crime Reporting Portal or helpline 1930 and, where possible, lodge an FIR.
Collect the SMS alerts, statement, screenshots and call logs that show when the transaction occurred and when you reported it.
Wait for the bank’s response timeline under RBI rules, then send the notice to the branch and the nodal officer if there is no reversal.
If the bank does not resolve the complaint within 30 days or rejects it, file a complaint with the RBI Integrated Ombudsman.
File a consumer complaint for deficiency in service if the loss remains unrecovered.
Frequently asked questions
Will the bank refund money lost in a UPI fraud?
It depends on who was at fault and how quickly you reported. RBI’s rules make the customer’s liability zero when the bank was negligent or when a third-party breach is reported in time. If you shared your credentials, the bank may treat the loss as your liability until you report.
How quickly should I report an unauthorised transaction?
Report at once. The existing RBI framework uses three working days for zero liability in third-party breaches, and the revised 2026 directions, applicable to transactions on or after 1 January 2027, use five calendar days. Also report on 1930 or the cyber crime portal.
Can I file a case against the bank for UPI fraud?
You can file a consumer complaint for deficiency in service and complain to the RBI Ombudsman. The FIR against the fraudster is separate, and you may also seek compensation from the bank if it ignored its duties under RBI’s rules.
Related notice formats
Demand Notice under Section 13(2) SARFAESI Act Format
Debt & RecoveryCheque Bounce Legal Notice (Section 138 NI Act) Format
Debt & RecoveryLegal Notice for Recovery of Money (Outstanding Dues) Format
Debt & RecoveryLetter of Demand Format (Letter of Demand vs Legal Notice)
Property & TenancyEviction Notice to Tenant (Notice to Quit) Format
EmploymentLegal Notice for Unpaid Salary / Wages Dues Format
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