
In a recent case, the District Consumer Disputes Redressal Commission in Chandigarh took a strong stance against unauthorized banking practices. The Commission directed the Chief Manager of Punjab National Bank (PNB) in Sector 17-B, Chandigarh, to refund Rs 11,500 to Sarla Devi, a resident of Sector 38-West, Chandigarh. Additionally, the bank was ordered to pay 10% interest per annum on the amount, starting from the date it was debited until the refund is completed.
The Incident
Sarla Devi’s troubles began on November 21, 2019, when she visited an SBI ATM at Dadu Majra to withdraw cash. Unfortunately, her transaction did not go through, and she faced difficulties in operating the machine. At that moment, a stranger approached her under the guise of helping her with the transaction. However, instead of assisting her, the individual deceitfully swapped her ATM card with another one. Unaware of the switch, Sarla Devi later realized that Rs 2,000 had been withdrawn from her account without her consent.
Bank’s Initial Inaction
Concerned and upset, Sarla Devi promptly reported the unauthorized transaction to the bank and requested that her card be blocked to prevent further misuse. However, despite her timely request, the bank failed to take immediate action. Consequently, on December 4, 2019, an additional Rs 9,500 was withdrawn from her account, again without her authorization.
Temporary Relief and Subsequent Issues
Following her complaints to both the bank and the police, the bank credited Rs 11,500 (the total amount withdrawn) back into her account on December 20, 2019. During a visit to the police station, a police official informed Sarla that the bank had refunded the amount, and she confirmed the same by checking her account. Feeling reassured, she signed a document agreeing not to pursue legal action against anyone involved.
However, about 20 months later, Sarla was shocked to find that the bank had reversed the Rs 11,500 credit without any prior notice or consent. Disturbed by this unexpected action, she once again reached out to the bank and the police on September 13, 2021, seeking a resolution. Unfortunately, her requests were ignored.
Bank’s Defense and Commission’s Verdict
The bank, in its defense, claimed that Sarla Devi had been negligent in handling her ATM card. They argued that she had allowed another person to operate the card on her behalf, even providing them with her PIN. Based on this, the bank justified their action, stating that there was no fault on their part.
However, the Consumer Commission did not find the bank’s argument convincing. The Commission pointed out that the bank failed to provide any verification report or evidence to support their claim that Sarla was negligent. Moreover, the Commission noted that the bank had reversed the credited amount without her consent, which constitutes a deficiency in service.
As a result, the Commission ruled in favor of Sarla Devi, ordering the bank to refund the Rs 11,500, along with 10% interest per annum, acknowledging that the bank’s actions were unjust and unauthorized.
Conclusion
This case serves as a crucial reminder of the importance of consumer rights and the responsibilities of banks to protect their customers’ funds. It also highlights the need for vigilance when using ATMs and the importance of reporting any suspicious activities immediately. The Consumer Commission’s decision reinforces that unauthorized actions by banks will not be tolerated and that consumers have the right to seek redressal for any deficiencies in service.
This not the only case in isolation. In an account maintained at Mahalakshmi Layout Bangalore there is a case on embezzlement of funds on the advice of the Manager (Law) yet being protected by the Zonal Manager, Hyderabad by sweeping the issue under the carpet.