HDFC Bank Held Liable By NCDRC For Not Sending SMS Alerts Regarding Unauthorized Transactions
In a recent ruling, the National Consumer Disputes Redressal Commission (NCDRC) chaired by Dr. Inderjit Singh (Presiding Member) addressed a case involving HDFC Bank’s handling of unauthorized transactions and failure to provide SMS alerts. This decision highlights issues of consumer protection and banking responsibilities.
Background
The Complainant, holding a savings account with HDFC Bank and possessing an associated ATM cum debit card, discovered unauthorized withdrawals totaling Rs. 35,000/-. Despite the bank’s protocol of sending SMS alerts for transactions, the Complainant did not receive any notification. Subsequent attempts to resolve the matter with the bank were unsuccessful, prompting the filing of a consumer complaint with the District Consumer Disputes Redressal Commission in Nagaon, Assam.
District Commission Ruling
The District Commission ruled in favor of the Complainant, ordering HDFC Bank to reimburse Rs. 35,000/- and pay Rs. 5,000/- as compensation along with Rs. 5,000/- as legal costs. Dissatisfied with this decision, HDFC Bank appealed to the State Consumer Disputes Redressal Commission, Assam.
State Commission Appeal
In its appeal, HDFC Bank contested the authenticity of the Complainant’s claims, arguing he had only submitted a photocopy of the ATM card and questioning the jurisdiction of the District Commission in handling fraud-related disputes.
NCDRC Decision
Upon review, the NCDRC noted that the unauthorized withdrawals occurred despite the absence of SMS alerts, which the Complainant had received consistently for previous transactions. The Commission also observed the lack of conclusive CCTV footage supporting HDFC Bank’s claims. In light of procedural fairness and consumer rights, the NCDRC upheld the decisions of both the District and State Commissions.
