Couple’s Driver stole money from their bank account via internet banking, SBI fined by Consumer Court
After retiring, many seniors look for ways to secure their finances, often choosing to open fixed deposit accounts in reputable banks. They hope that the interest earned will help cover their future expenses. Unfortunately, a senior couple from Hyderabad experienced a nightmare when their hard-earned savings were wiped out due to fraud.
The Incident
The elderly couple had over ₹60 lakh (approximately $72,000) saved in their State Bank of India (SBI) savings account and fixed deposits (FDs). They had only granted ‘view-only’ access to their accounts through SBI’s internet banking, intending to keep their savings secure. However, their driver gained unauthorized access to their banking details. Using his mobile phone, he activated the ‘transaction facility’ without their knowledge.
The driver broke the fixed deposits early and transferred all the money to his account, leaving the couple with just ₹3 lakh when they went to update their passbook. Shocked and confused, they quickly contacted the SBI branch manager and lodged a police complaint.
The Legal Battle
After receiving unsatisfactory responses, the couple filed a complaint with the RBI Ombudsman. Their struggle didn’t end there; they took their case to the Telangana State Consumer Commission and, eventually, to the National Consumer Disputes Redressal Commission (NCDRC). This battle lasted six long years.
Both the NCDRC and the state consumer commission ruled that SBI had failed in its duty to protect its customers by allowing the unauthorized change of account access. They concluded that this negligence led to the fraud.
Key Facts of the Case
- Account Opening: The couple opened a joint savings account and three fixed deposits totaling ₹40 lakh on August 9, 2017.
- Discovery of Fraud: On April 4, 2019, they discovered that ₹63 lakh had been withdrawn from their account without their consent.
- Unauthorized Access: Although the couple had requested ‘view-only’ access, the driver was able to change this to ‘transaction facility’ without proper verification.
- Fraudulent Transactions: The driver used the SBI YONO app and internet banking to carry out the theft, which included breaking the FDs and transferring funds to his own account.
What SBI said?
Lawyers representing SBI said that 37 transactions worth Rs 63,74,536 occurred in the elderly couple’s bank account, which the couple says is’ unauthorised’.
The bank’s lawyers said that the ‘transaction rights’ were enabled by logging into https://www.onlinesbi.com on August 5, 2018, at 11:20 AM. “The bank sent an OTP to the registered mobile number to complete this request on the same day. Thus, the claim that she did not have transaction rights did not hold……All transactions were initiated and completed upon proper validation of customer credentials. Further, each fund transfer was authenticated via an OTP sent to the registered mobile number of the customer. Notifications of deposits/ credits in the savings account were also sent via SMS, indicating that the respondents were aware of the transactions,” said the bank’s lawyers.
Lawyers representing SBI said, “It is the customer’s obligation to prevent unauthorised use of their mobile device and to avoid sharing the mobile banking password/PIN with unauthorised persons. They shared their mobile, PIN number and other details with their associates, and that all disputed transactions were conducted by these associates either in connivance with them or due to their negligence.”
What the NCDRC Said
The NCDRC highlighted that SBI did not adequately verify the request to change access rights. The bank’s negligence left the elderly couple vulnerable. They noted that if SBI had required customers to be physically present to authorize such changes, this fraud might have been prevented. The NCDRC ruled that SBI was liable for the loss and stated that the couple could potentially recover around ₹97 lakh, including their lost savings and damages.
Conclusion
The story of this elderly couple serves as a stark reminder of the importance of safeguarding personal finances. As banking increasingly shifts online, it’s crucial to stay informed about potential risks and to advocate for better protections. If you or someone you know is in a similar situation, remember that seeking legal advice and knowing your rights can make a significant difference.
1. in this case first and utmost point that how did the Driver get User Id, password, profile password.
2. Second point is undoubtedly there
is collusion of couple’s driver with any techno-savvy person, whether he/she may be from staff member or from.outside, but certaiy was well acquainted with functions of SBI YONO App otherwise to change from ‘view rights’ to ‘transaction rights’ is not possible without consent of joint account holders and without visit the branch physically untill and unless to submit their request for the purpose.
It is my personal opinion that couple had blind faith on their Driver and anytime the YONO App was hanged or stopped the function, meanwhile the Driver requested or the couple requested to/by to check the Internet which was downloaded in their mobile and during this incident, the Driver asked them about user I’d, passwird, etc. required at that time of running.
Otherwise, no one crack the firewall of SBI YONO App because it is too safe to defrauded anyone.
Conclude
I am of my personal views that because of a huge considerable amount involved, hence case may be transferred to CBI, in addition to Deptt. Enquiry.