The Uttar Pradesh State Consumer Disputes Redressal Commission has taken a strong stance against a private bank for its mishandling of an online fraud victim's case. The commission slapped a hefty fine of ₹5.2 lakh on the bank for disbursing a personal loan of ₹7 lakh to the victim despite her falling prey to an online scam. Adding to the penalty, the bank was also fined ₹25,000 for causing harassment to the affected customer.
The double bench of justices Ashok Kumar and Vikas Saxena delivered the verdict, ordering the bank to pay the specified amount within a month. Failure to comply would lead to an additional 10% fine on the total penalty.
The unfortunate incident unfolded on June 21, 2021, when an imposter contacted Meenu Khare, a bank customer with a joint savings account alongside her 80-year-old mother, Suman Srivastava. During the call, Khare's mother inadvertently shared the One-Time Password (OTP) for updating the KYC details. The fraudster swiftly exploited this opportunity to secure a loan of ₹7 lakhs through internet banking, making unauthorized withdrawals of ₹2 lakh and ₹1.98 lakh, respectively.
Upon discovering the fraudulent transactions, Meenu Khare was shocked to find that her account balance had diminished to just ₹1.02 lakh. She immediately contacted the bank's customer care, requesting an account block and sent an SMS seeking account suspension. While the bank acknowledged the receipt of the complaint, it failed to prevent the loan's Equated Monthly Installments (EMIs) from being debited.
Despite filing a First Information Report (FIR) at the Kaiserbagh police station, Khare received no relief. Frustrated by the bank's inaction, she sought recourse through the State Consumer Disputes Redressal Commission on February 24, 2022.
In response to the complaint, the bank claimed that the fraudster had obtained the OTP through Khare's mother, thereby absolving itself of any wrongdoing. However, Khare's lawyer, Muzeeb Effendi, contested this, arguing that the bank should have notified his client about the approved loan.
Effendi cited Reserve Bank of India (RBI) rules, which hold banks liable for unauthorized electronic banking transactions. Considering the arguments from both sides, the commission held the bank accountable for deficiencies in its services and ruled in favour of the complainant, granting her the right to relief.
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