Chaibasa: The West Singhbhum District Consumer Disputes Redressal Commission has held Canara Bank deficient in service in a case involving unauthorised UPI transactions from a customer’s savings account. The commission has directed the bank to refund ₹48,765 allegedly withdrawn from the account and pay ₹15,000 as compensation for mental harassment and ₹10,000 towards litigation expenses. The total financial relief awarded to the complainant is ₹73,765. The bank has been directed to make the payment within 45 days of receiving a copy of the order, failing which it will have to pay interest at the rate of 9% per annum.
The case concerns multiple UPI transactions from the savings account of complainant Dhanesh Kumar. According to Kumar, he had been maintaining a savings account with Canara Bank’s Jain Market branch in Chaibasa for around eight years. On October 3, he received messages on his mobile phone informing him that a total of ₹48,765 had been withdrawn from his account through several UPI transactions.
Complaint Filed With Bank the Same Day
After receiving the transaction alerts, Kumar visited the bank branch the same day and submitted a written complaint regarding the unauthorised transactions. He requested the bank to investigate the matter and restore the money to his account.
According to the complainant, he also approached the bank’s grievance redressal system several times, but the disputed amount was not refunded.
With no resolution at the bank level, Kumar approached the West Singhbhum District Consumer Disputes Redressal Commission. During the proceedings, Canara Bank argued that the disputed transactions had been carried out through third-party applications such as Paytm and Google Pay. The bank relied on this ground to deny direct responsibility for the transactions.
However, despite being served notice, no representative of the bank appeared on the scheduled date of hearing. The commission subsequently decided on March 16 to proceed ex parte against the bank.
Bank Failed to Prove Transactions Were Authorised
During the proceedings, the commission examined whether the disputed UPI transactions had actually been authorised by the account holder. According to the commission, the bank failed to establish that the transactions had been carried out or authorised by Kumar.
The bank did not produce sufficient authentication records or documents to establish that the complainant had personally initiated or approved the transactions involving ₹48,765. The commission held that merely stating that the transactions were conducted through third-party applications could not automatically absolve the bank of its responsibility.
The order underlined the accountability of banking institutions in cases involving unauthorised digital transactions. When a customer disputes a transaction, the bank must establish that the transaction was duly authorised and that the required authentication process was completed.
₹73,765 to Be Paid Within 45 Days
The consumer commission has directed Canara Bank to credit ₹48,765 back into the complainant’s account within 45 days of receiving a copy of the order. The bank must additionally pay ₹15,000 as compensation for mental harassment and ₹10,000 towards litigation expenses.
The total amount payable to the complainant will therefore be ₹73,765. The commission has also specified that if the bank fails to make the payment within the stipulated period, interest at 9% per annum will be applicable.
The ruling assumes significance as digital payments and UPI transactions continue to become an integral part of everyday banking. The case highlights the importance of timely reporting when an unauthorised transaction occurs and preserving transaction records and complaint details.
The commission’s order also makes clear that a bank cannot automatically avoid responsibility for disputed transactions merely by pointing to a third-party payment application. The authentication and authorisation of the transaction remain crucial factors when determining liability in an unauthorised digital payment dispute.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
