In a significant ruling, the Tripura State Consumer Disputes Redressal Commission (SCDRC) in Agartala has ordered the State Bank of India (SBI) to fully compensate a customer who lost money due to an OTP fraud. This decision was delivered in the case of [Satish Debbarma V. Chief General Manager, State Bank of India and Two Others].
Background of the Case
The case originated when Satish Debbarma, an SBI customer, received a fraudulent call on August 19, 2022, prompting him to share his One-Time Password (OTP). Consequently, over ₹3 lakh was debited from his account. Debbarma immediately attempted to contact the SBI Branch Manager but was unable to do so as his phone was hacked. He then rushed to the branch, where the manager deactivated his accounts, preventing further unauthorized transactions. A police complaint was filed the following day.
Partial Refund by the Bank
On August 24, 2022, SBI refunded ₹1,96,000 to Debbarma, leaving a balance of ₹1,49,500 still unreturned. Unsatisfied with the partial refund, Debbarma approached the district consumer court, which dismissed his complaint. He subsequently filed an appeal with the State consumer forum.
Findings of the Commission
The Commission, comprising President Justice Arindam Lodh and members Daliya Saha and Jhantu Debnath, found SBI officials responsible for delays in responding to Debbarma’s complaint, which resulted in the loss of ₹1.49 lakh. The SCDRC noted that the bank’s negligence in addressing the issue promptly allowed the fraudulent transactions to occur.
The bank’s justification for the delay, citing that the complaint was made over the weekend, was rejected by the Commission. They emphasized that the bank should have taken immediate action, regardless of it being a non-working day.
Negligence in Handling the Fraud
The investigation revealed that the fraudulent amount had been kept on hold in the bank’s parking account for over 96 hours. Despite this, the bank’s system administrator failed to take necessary actions to return the money to Debbarma’s account. The Commission criticized the administrator for not fulfilling his duties and protecting both the customer’s and the bank’s interests.
Order for Full Compensation
The SCDRC ordered SBI to pay the remaining ₹1,49,500 to Debbarma within three weeks. Additionally, SBI was directed to compensate Debbarma ₹50,000 for the deficiency in service.
Advocates A Barik and DK Paul represented the customer, while advocates P Saha and AL Saha appeared for SBI.
This ruling underscores the importance of vigilance and prompt action by banks in handling customer complaints and preventing fraud. It also highlights the accountability of financial institutions in providing adequate and timely service to their customers.
Very informative for bank staff and customers too.