Illegal transactions: Bank told to pay Rs 30K compensation

The District Consumer Disputes Redressal Commission, Chandigarh, has held a bank guilty of deficiency of services after a city resident suffered a loss of Rs 1,34,877 through three unauthorised and illegal transactions.

In directed the bank to pay Rs 1,34,887 along with interest at the rate of 9% per annum from February 1, 2024, till the date of its actual realisation along with lump sum compensation of Rs 30,000 to the complainant within 45 days from the date of receipt of certified copy of this order.

In her complaint filed before the commission, Dr Jaspreet Kaur said she had been maintaining a savings bank account with State Bank of India’s Lovely Professional University branch for the past 15 years. Her salary is being credited in her account every month. On January 30, 2024, two unauthorised transactions were done from her account and Rs 88,888 and Rs 11,000 were debited without her consent and knowledge.

She did not receive any SMS or mail from the bank regarding these transactions. The complainant came to know about these transactions when SBI Customer Care called her and asked about these transactions.

She was instructed to shut down the internet on her mobile number and reach out to the nearest SBI branch. Jaspreet approached the bank and met an executive who reportedly refused to take any written complaint and asked her to register the complaint with Customer Care.

The complainant called the Customer Care number and requested them to block ATM, Internet banking and disable UPI PIN of her account.

On February 8, 2024, Jaspreet visited the bank to check the status of her complaint and was surprised to know that despite of her complaint, UPI was not disabled and there was again unauthorised transaction of Rs 34,999 on January 31. She suffered a loss of Rs 1,34,877 even as she did not provide any information, PIN or details of her account to anyone.

Denying all allegations, the bank claimed that as per the Standing Operating Procedures of the bank on Unauthorised Electronic Debit Transaction, some documents are required by the bank for processing the complaint. Despite sending emails/reminders and having a telephonic conversation with the complainant, she failed to submit the requisite documents. At UPI platform, every transaction by using UPI PIN is purely confidential and known to the customer only and after verifying the OTP number sent on the registered mobile of the account holder, the transaction is complete. Hence, there is failure on the part of the complainant regarding safe keeping of his payment credentials, the bank claimed.

After hearing of the arguments, the commission said the bank employees are bound to discharge their duty with responsibility and due diligence.

It is desirable that the bank employees should provide proper information and guidance to its customers to file the proper written complaint about unauthorised transactions from their bank account till the recovery of the same.

In the present complaint, the bank not only remained deficient in rendering proper service by refusing to accept written complaints from the consumer but also negligent by not providing her copy of SOPs in order to enable her to fill the same and submit the same to the concerned quarter, the commission said.

The bank also remained negligent in resolving the issue of the complainant, which makes them liable to compensate the consumer for the same, it added.