NEW DELHI– The Delhi State Consumer Forum has upheld an earlier decision, compelling the State Bank of India (SBI) to provide a full refund and compensation to a customer, Mr. Panwar, who was a victim of ATM fraud more than a decade ago. The fraud, which occurred on January 4, 2014, involved three unauthorized cash withdrawals from his account at Guwahati Railway Station, immediately after his own transaction at the ATM failed. Despite Mr. Panwar’s prompt complaints to SBI and the Reserve Bank of India’s Banking Ombudsman, he received no satisfactory resolution, leading him to seek redress through the consumer forum.
The Forum’s Landmark Decision
The Delhi District Consumer Forum initially ruled in favor of Mr. Panwar, ordering SBI to refund the stolen amount of ₹20,000. Crucially, the forum also mandated an additional 10% interest per annum on this amount, calculated from the date of the fraud. Recognizing the prolonged distress and legal expenses incurred by Mr. Panwar, the forum further directed SBI to pay ₹5,000 towards litigation costs and ₹10,000 as compensation for the mental agony he endured.
SBI’s Unsuccessful Appeal
SBI, disputing the district forum’s verdict, chose to appeal the decision. However, their appeal was rejected by the Delhi State Consumer Forum, which affirmed the initial ruling. This confirms the consumer’s right to redress in cases of banking fraud, especially when the bank fails to act appropriately or promptly. The consistent judgment from both forums underscores the accountability of financial institutions in protecting their customers’ funds.
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Lessons for Consumers and Banks
This case serves as a crucial reminder for both consumers and banks. For customers, it underscores the paramount importance of immediately reporting any unauthorized transactions or suspicious activities on their accounts. Prompt action, even if initial complaints are not resolved, can form the basis for successful legal recourse later on. For banks, the ruling emphasizes their responsibility to establish robust security measures and efficient redressal mechanisms for fraud cases.