The District Consumer Disputes Redressal Commission, Panchkula bench held State Bank of India (SBI) liable for deficiency in services due to unauthorized transactions from the Complainant’s bank account. The bench directed SBI to compensate the Complainant and pay for the litigation costs.
Complaint and Incident
Mr. Tarsem Kumar Mahajan had a savings account with SBI and received a KYC update message. After clicking the provided link, his mobile malfunctioned and upon restarting, he discovered unauthorized transactions of Rs. 64,999/- from his bank account. He promptly reported the incident to SBI, filed a police complaint, and sought action against the fraudster.
Failure in Addressing the Issue
SBI’s online software system failed, allowing unauthorized withdrawals and resulting in a financial loss for the Complainant. Despite complaints, SBI did not address the issue adequately.
Consumer Complaint
Feeling aggrieved, the Complainant filed a consumer complaint against SBI with the District Consumer Disputes Redressal Commission, Panchkula.
SBI’s Response
SBI argued that the Complainant’s actions and omissions estopped him from filing the complaint. It claimed that an FIR was lodged against unknown persons, but the Complainant failed to disclose its status to the District Commission. SBI asserted that the fraud resulted from the Complainant’s conduct and that the bank never solicited KYC updates through messages.
RBI Circular and Liability
The District Commission referred to a circular issued by the Reserve Bank of India (RBI) on ensuring the safety and security of electronic banking transactions. The circular stated that in cases of unauthorized transactions, if a customer suffers a loss, it is presumed to be due to the bank’s failure to implement effective systems, making the bank liable.
District Commission’s Decision
The District Commission noted that the Complainant promptly reported the unauthorized withdrawal and took appropriate action. It found that SBI failed to adequately investigate the matter or implement robust fraud prevention mechanisms, as required by the RBI circular. Therefore, it held SBI liable for deficiency in services.
Compensation and Litigation Costs
As a result, the District Commission directed SBI to compensate the Complainant with the amount of Rs. 64,999/- along with 9% interest per annum. Additionally, SBI was instructed to pay Rs. 10,000/- as compensation for mental agony and harassment to the Complainant, as well as Rs. 5,500/- for the litigation costs incurred.
I also had the same experience on Feb. 3rd for Rs.10000. Although reported the next minute, the bank does not give any positive reply. Instead, it says it is our mistake. Can I place a complain now?
Sure
Only if u have all documents for evidence
Contact Legal advisor.
Perfect order
It is easy for SBI to state that it is customer mistake,but there is no mechanism to inform the account holder in advance similar to cheque system.If transaction is carried out on another mobile then Bank should be responsible for unauthorised transaction.