SBI Ordered to Refund Rs 4.02 Lakh After Bank Cashier Fraudulently Withdrew Elderly Woman’s Money
The District Consumer Disputes Redressal Commission in Rohtak, Haryana, has held the State Bank of India (SBI) responsible for failing to protect an 80-year-old woman’s savings from fraudulent withdrawals allegedly made by one of its own employees. The commission ruled that the bank is liable for the actions of its staff and directed SBI to refund ₹4.02 lakh to the customer. It also ordered the bank to pay ₹10,000 towards compensation and litigation expenses.
The order was passed on June 30 by Commission President Nagender Singh Kadian and members Dr. Tripti Pannu and Dr. Vijender Singh.
Customer Alleged Fraudulent Withdrawals from Joint Account
The complaint was filed by Krishna, who stated that she and her husband had a joint savings account with SBI. According to her, a total of ₹4.37 lakh was fraudulently withdrawn from their account on different dates between October 29, 2019, and February 12, 2020.
She alleged that after discovering the missing money, she approached the SBI branch manager. The manager reportedly informed her that a bank employee had illegally withdrawn the amount and assured her that the money would be returned. However, despite this assurance, the amount was never credited back to her account.
FIR Filed Against Bank Employee
After no action was taken by the bank, Krishna’s husband filed an FIR on March 1, 2020. The complainant argued that SBI’s failure to restore the money amounted to deficiency in service and caused her mental stress and harassment.
SBI Denied the Allegations
SBI and the concerned branch manager filed a joint reply before the commission. The bank argued that the complaint was not maintainable and claimed that, according to its records, the withdrawals were made by the account holder herself.
The bank also stated that an internal inquiry into the alleged fraud was still pending and that further action would be taken based on the investigation and bank rules. SBI denied all other allegations and requested that the complaint be dismissed.
Commission Found No Evidence Supporting SBI’s Claim
After examining the records, the commission observed that SBI failed to produce any independent evidence proving that the complainant or any authorized person had withdrawn the money.
The commission also noted that the bank did not submit any handwriting expert report, forensic science laboratory (FSL) report, or other expert evidence to verify the signatures on the disputed withdrawal slips.
The commission further referred to the FIR, which alleged that the fraud had been committed by an SBI employee. It also pointed out that SBI itself admitted in its written statement that an inquiry into the alleged fraud was pending, indicating that fraudulent activity had occurred within the bank.
The commission stated that it is the bank’s responsibility to protect customers’ deposits and that an employer is legally responsible for the wrongful acts committed by its employees during the course of their duties.
Commission Orders SBI to Refund Money
Based on the findings, the commission allowed the complaint and directed SBI and the concerned branch manager to:
- Refund ₹4.02 lakh to the complainant.
- Pay interest at the rate of 9% per annum from the respective dates on which the money was withdrawn.
- Pay ₹5,000 as compensation for deficiency in service.
- Pay ₹5,000 towards litigation expenses.
The commission directed that these payments be made within 30 days.
Why This Order Is Important
The ruling reinforces that banks have a legal duty to safeguard customers’ money. If a bank employee commits fraud while performing official duties, the bank can be held responsible for the loss. The decision also highlights that banks must maintain proper records and provide evidence if they claim that disputed transactions were genuine. Customers who suffer losses due to negligence or fraud by bank employees can seek relief through consumer commissions.
