Court orders Indian Bank to pay Rs 10 lacs compensation for transferring money from customer’s account to unknown person

Marked by a lack of due diligence by Indian Bank, Mr. Harish Chander faced a significant setback when an unauthorized transaction of Rs. 10 Lakhs occurred due to deficiencies in JIO’s service. The issuance of his mobile number to another SIM card paved the way for two unauthorized transactions, prompting Mr. Chander to seek justice.
Complaint and Bank’s Response
Upon receiving an email notifying the Rs. 10 lakh transfer to an unknown account, Mr. Chander promptly approached the bank, discovering three unauthorized transactions. Despite his immediate request to freeze the account and report the incident, the bank’s lackluster response and uncooperative attitude exacerbated the situation.
Investigation and Revelation
Further investigation revealed a JIO bill associated with the unauthorized transactions, highlighting a failure in the verification process for the SIM card change. The complainant’s proactive steps included registering complaints with the Cyber Crime Portal and the bank, but the responses were far from satisfactory.
District Consumer Disputes Redressal Commission’s Observations
The Commission acknowledged Mr. Chander’s prompt reporting to both the bank and the police on the day of the fraudulent transactions. Citing Reserve Bank of India (RBI) guidelines, which place the onus of proving customer liability on the bank in unauthorized electronic transactions, the Commission delved into the specifics of zero and limited liability scenarios outlined by the RBI.
Bank’s Zero Liability and Neglect of Obligations
Considering the prompt reporting and lack of immediate action by the bank to reverse the fraudulently withdrawn amount, the District Commission concluded that the bank was under zero liability as per RBI guidelines. However, the bank’s failure to fulfill obligations, including obtaining CCTV footage and conducting a thorough inquiry, held it accountable for compensating Mr. Chander.
JIO’s Deficient Service
The Commission acknowledged that JIO’s deficient service directly caused the complainant’s loss. However, as Mr. Chander did not seek relief against JIO, the Commission refrained from quantifying compensation against the telecom provider.
Verdict and Compensation
In a decisive ruling, the District Consumer Disputes Redressal Commission directed the bank to pay Rs. 10,00,000 within thirty days, along with 9% p.a. interest from the fraudulent transaction date. An additional compensation of Rs. 1,00,000 was mandated for the mental distress and harassment suffered by Mr. Chander. This verdict underscores the importance of accountability and timely action in addressing unauthorized transactions.
Try to appoint trusted and tested persons for the job. Appointment or poaching of high level personnel will give rise to these sort of error of omission & commission will again & again. Have HRD who knows the entire job of banking. Picking up high shots may be the advertisement on the media.
Bank has the responsibility and accountability to affected customers. Penalty of Rs 1 lakh is too small an amount. Can this be increased to 5 lakhs?
Goof
In Indian bank , TCS is engaged with Bank CBS software support. The support and infrastructure of this software is very very worst.Though the staffs trying to do best, the software arrangements are not supported. Due to this staffs mental health spoiled and customers are feeling bad experience with bank. The technology being going down in PSUs nowadays. All technical staffs to trained and who are unfit to be moved to generalised catagory.
I request the concern affected person has to give a first complaint on the network service provider. How he can give that particular number when a person is using it. On what basis he have changed the SIM. Secondary the bank. When the aim card has been changed how that particular person mobile number is been authenticated from the same number unless and until their is a request from the secondary source they are not supposed to do it. Their the banking is lacking. With upon all these steps a person can avoid illegal sim swap transactions.
Only very recently, I had similar experience with the same bank. For a FD amount of Rs. 1 lakh made, my SB account was debited 1 lakh twice and both debits through messaging was sent at the same time. As iam a Senior Citizen, and the message was received after the Bank closed it’s operations for the day, I had sleepless night that day, and have to wait till the Bank opened tomorrow. In the same week Banks were closed continuously for 3 days as Bank Holiday. Today, Senior Citizens visit Bank branches for all their financial transactions as everything has gone digital. The Bank may have work pressure, but when they deal with customers money they need to be more careful.
Nowadays Bank’s are not in the habit of responding to the customer’s queries. If you ask some thing , the reply will be something else which is quiet irrelevant to your query. Actually the banks are required to send quarterly TDS certificates after the quarter is over after one month.
They never sent. If one asks for the statment, the reply comes with out TDS CERTIFICATES. A long correspondence takes place if one got patience. Finally the TDS information won’t come or information not available for the quarter. The CUSTOMER CARE PORTAL is actually UNCARE PORTAL. RBI’S OMBDSMAN is another portal which is not helpful.
Most of them are Andra guys in Indian Bank. Very rude behaviour even in Karnataka nonsense fellows.
U can’t target one community for that…it is very wrong. It totally depends on individual behaviour and nature
Bank aunties n uncles are cunning souls. They leave their seats when you ask them to hurry up. Bank aunties n uncles are innocent n lazy souls.
Useless banks useless country
The services in Banks have deteriorated to the core. The staff at the counter never lift their head when a customer interacts with them. Moreover they are not well versant with the local languages. Though the salary structure is increased tremendously, the accountability on the staff is nil. The main culprit is trade union leaders who supports every issues. It is high time this type of losses should be recovered from the concerned staff. Then there will be fear psychosis. Further the management also should be proactive and to avoid unnecessary third party products which claims much of the time for officials.
Despite all these facts, banks are still the most accountable and responsible Public sector entities. When we talk about accountability, what is the accountability of our MLA/MP, who win from our votes for our development and earn hundreds of crores every year by looting us directly or indirectly !! Until the change in the system travels upside down, it can’t be made sustainable. One should watch a movie called “Platform” to understand this. The Govt is banning local Chinese lights which are sold by poor vendors and at the same time, Govt is giving contract to Chinese companies for construction of several epic projects. Govt is banning Chinese apps and at the same time Govt is busy signing MoU with MG motors to increase sales of MG cars (Chinese comp) in India. Nothing is gonna change, trust me…!!
The losses are recovered from staff only. Bank won’t give a single penny.
The comment reg no issuance of TDS certificate within the succeeding quarter: new private sector banks send by email suo moto. The public sector banks including the Indian Bank do not send within the stipulated time.
Now a days the common customers of Banks are manipulated with irrelevant schemes by banks. Banks do not require common people as their customers as higher earning groups are their main scapegoats. Moreover, now and then we come to know Scams of Big Businessmen with the consortium of Banks, which certainly downfalls the Goodwill in overall markets. In such a scenario it is a Question Mark on controlling Policies by RBI and it’s authority. Where should common man go is a big dilemma & Question ?
When the customer is not using the mobile number and having sizable deposit in the account, it is his responsibility to update mobile number in Bank. It is seer negligence at part of the account holder and blaming others for his loss.
It is not TCS software but infosys finacle softywhich is used by most of the banks and it is the worst bank end software.Idiot Murthy is trying his best to be Tata by buying media to publish his fake stories along with his wife fake agenda.Truth is Infosys is a bad employeer & so do their software products
What Indian Bank branch done in my case was that they debited Rs 1, lakh from my SB account for some one’s FD request for the same amount , in addition to my FD. amount debit. ( Double debit) For my FD they have debited the amount by a withdrawal slip , though I have Cheque book for the account. On my complaint the next day, a transfer entry credit was made from that person’s account to my account.
Some blacksheeps are working most probably in IT wing. I had a bad experience. One oerson called me and infd my ac number ifsc code and full address and these are being vfd from indian bank designated branch for updating records. Tgen he told i had not used atm card and will send otp to activate the same. I told you tell me from which branch you are calling and his name. Immediately he dis connected the line. Innediatrly i contacted my home branch manager and asked to block my account and i will come in one hour. Then i went to the brnach and tfd entire amount to my wifes account. Tge question is how outside fraudsters get all details including pan card adhaar card account number etc.
Union Bank is another non caring bank as staff is rude. Made me wait 45mins every day for four days just to hand over my brother’s NRO ACCOUNT cheque book, debit card, passbook. On the 4th day, only passbook was handed over. I lodged complaint on bank portal, RBI ombudsman, Prime Minister,Finance
Minister, Chief minister, etc. absolutely no response from any one. This is how Indian govt treats it’s senior citizens. Absolutely shameful. The lade staff involved, arrogant and non caring. I have still not got the docs, waiting to see if it is mis-used and then will sue the bank
I read all the comments .it is fact that Indian bank’s customer service is not satisfactory to customers.
Higher authorities posted at Corporate office at Chennai can explain the reason.weveruthing can not be done digitally.behaviour, way of talking, humanity can not be manage or improve digitally. We all know this. But some persons think in reverse line . Myself is a retired employee of a bank which murged with Indian Bank .
I fill the difference changes I fill shameful for present days customer service of Indian Bank.
I read all the comments .it is fact that Indian bank’s customer service is not satisfactory to customers.
Higher authorities posted at Corporate office at Chennai can explain the reason.Everything can not be done digitally as the behaviour, way of talking, humanity can not be manage or improve digitally. We all know this. But some persons think in reverse line . Myself is a retired employee of a bank which merged with Indian Bank .
I fill the difference in changes. I fill shameful for present days customer service of Indian Bank.
I am a senior citizen.I have accounts with largest bank in India.My personal experience is something different than the above comments.They are very well behaved.One phone call is enough to solve my issue.Hope all should get the same experience in India.
i got a message on 29th nov,2023 that a hold of rs10609 has been made in my sbi savings account when getting enquire from the branch the next day they told its showing GICT reason in their system n the hold amount has also been debited from their branch account but i havent done any transaction for that particular amount n while asking the bank if the amount has been debited where has the amount gone they also couldnt provide me any information they told they have sent numerous mails to the head branch ,atm section,IT section but still the SBI bank as a whole couldnt provide me any informatio
Even HDFC is getting shoddy. I told them,in writing, to close my SB account and even after two weeks and personal visits to the Bank, the account is still open. What their game is I don’t know.
The banks also do not confirm / verify the email address of the customer. I get a lot of bank emails addressed to other persons with my name on my email. No amount of contacting the bank through regular channels help correct the issue. I had to take to X ( Twitter) to get it corrected. Even Regional Passport Office and other government departments including IT Department make this ‘miatake’.
In this incident Telecom Company is the Praimary and main culprit but they didn’t get any punishment as the customer file complaint only against The Bank.
Bank staff not involved with any of the e transaction,if any mishappening occured ,bank staff can only forward the issue/ complain to the back office ( most of the cases Third party Software vendor ),and stop the Account as per customer consent.
Now a days Staff strength reduces drastically in PSU banks ,as a result work pressure become tremendous .
Entry time fix for them by biometric but there are no specific time for leave the office ;many of my bankers friend from various banks left their office after 8pm everyday and even they force to attain their job on Holidays also.
Now a days each and every project/ scheme materialised through bank, each and every indian citizen has bank account . BANK PRIMARILY IS A BUSINESS INSTITUTION , BANK MAINLY SERVE TO THEM WHO HAVE MONEY AND WHO NEED FINANCIAL ASSISTANCE. but What is the present scenario of PSU banks!!! Think once please , before make any negative comments/ complain against psu bankers.
They serve the underprivileged people across the country and also Serve HNI people of the country ,, actually bankers blance our natinal economy. Request to all please support them ,stand behind them..to serve you better🙏
Thank u for the concern
As well said, it is telcom company which is primarily responsible for the incident. Bank is responsible only to the extent of no response or delayed response… But, astonishing fact is how the forum ignored jios role in the fraud… Is it the forum/court’s duty to resolve against the complainee only mentioned by complainant ? Is it the previlege of complainant to choose whom to punish ?..
Then banks, mostly PSU banks, are most vulnerable…
Even most of RBI directives simply make banks responsible, whether rational or irrational.. absolves itself from any responsibility… Just bcz it has the power to make rules.
It is happening in almost all the Nationalised Bank. I had an experience with Bank Of Maharashtra, they had debited annual maintenance charges for ATM card which they never delivered. Correspondence with higher authority, RBI and Min. Of Finance is in process. Min of finance and RBI had registered the complaint.
In fact all Bank are Knowingly maintaining some money laundering accounts. If we complaint also no use.
All these money laundering accounts are activate in one day will be block another day. These all are well known to bankers. Including ICICI also using so many accounts like this
Yes you are all right. For everything you need banking services in day today life but we don’t need banker. it’s their responsibility to hand over hundreds of customers in a single day, Only thing we need is our work is to be done.
I support Tarun’s comment. Why Jio was not punished.
Everybody jumping on conclusion, verdict once PSB name come into picture. Are pvt sector Bank have defficiency and non transparent way of functioning
Recently Indian Bank deleted my mobile number associated with my savings bank account with it, saying they had accidentally created a duplicate customer relationship number for my account. Despite pleas that it was genuinely my number for the account (jointly held with my wife) they are yet to restore it. The result is my netbanking transactions have been blocked.
The KYC procedure in Indian Bank is too complicated and their systems and procedures are not as per RBI guidelines in this regard. So the result is an avoidable harassment to its customers which Bank is not bothered to do.Lot of harassment in the name of KYC in this Bank.
I also support Mr. Tarun comment the court must take cognizance against the telecom company being the main culprit in this fraudulent transaction hoping that the court will do the justice
Indian Bank is the most of fraudulent transaction bank now a days