The Consumer Commission ruled the State Bank of India accountable for failing to take appropriate action to monitor a complainant’s accounts, resulting in unauthorized transactions and losses.
Dr. Uday Gupte, the complainant, received a message claiming that his KYC for Paytm had been suspended and that he should contact a specific telephone number for further assistance. When he contacted the number, he was instructed to download the Quick Support App, which resulted in unauthorized transactions on his credit and debit card accounts, resulting in losses of Rs 99,000 and Rs 40,000, respectively. Despite reporting the occurrence to SBI and SBI cards, both companies denied the complainant’s refund requests.
The panel, presided over by President Atul Alsi and members Chandrika Bais and Subhash Ajne, determined that the complainant disclosed the details, including the OTP, with a third party, which resulted in the loss. According to the Reserve Bank of India circular on Zero Liability, the consumer pays the complete loss in such instances. As a result, SBI Cards was not obligated to reimburse the complainant as requested in the complaint.
However, in the SBI case, where the complainant lost Rs 40,000, the commission found the bank negligent for failing to restrict additional transactions even after the complainant reported the unauthorized transaction. The bank was directed to pay the plaintiff Rs 20,000 in addition to Rs 10,000 in compensation for mental anguish and Rs 10,000 in litigation costs.
Adv Mahendra Limaye represented the complainant.