Banks must compensate digital fraud victims if due diligence fails: Supreme Court

The Supreme Court said banks must compensate digital fraud victims at least the amount lost if a probe finds the fraud stemmed from their failure of due diligence. A bench led by CJI Surya Kant said RBI's proposed KYC rules must include enforceable liability clauses, noting victims lost ₹800 crore this year. It suggested AI-based monitoring and police alerts for suspicious high-value transfers.