The Dakshina Kannada District Consumer Disputes Redressal Commission in Mangaluru has ordered the State Bank of India (SBI) to quash the credit card transaction and penalty of a customer, saying the bank failed to respond to his complaint of cyber fraud on time. On August 28, the Dakshina Kannada District Consumer Disputes Redressal Commission in Mangaluru observed in its order that service was deficient on the part of the state-run bank.
Complaint in brief:
The Complainant Mr.Manikanta received a call on 11-04-2023 from an unknown number and the caller claimed to be from the SBI customer care department. As per the Complainant, the caller told him that his SBI credit card was blocked and advised him to cancel the activation. The caller also asked for the Complainant’s credit card number, CVV number, and OTP number. Once the details were shared by the Complainant, a sum of Rs.3,60,000/- was transferred from his account without his knowledge. Again on 12-04-2023, the same person called the Complainant to say that his credit card bills were pending and instructed him to deposit the said amount.
Subsequently, the Complainant lodged complaint with the SBI branch and also with Crime Branch Police station, Mangalore. The police called the credit card department of SBI and enquired about the transaction but the SBI credit department told the police that there was no such transaction. However, later on, the credit card department informed the Complainant that there was a transaction.
Later, the Complainant filed a complaint with Cyber, Economics and Narcotics Police Station in Mangaluru saying his credit card had insurance of up to Rs2,00,000/- with HDFC Ergo but SBI’s branch had given him a credit card limit of Rs.5,00,000/- lakh and insured only for Rs.2,00,000/- lakh instead of Rs.5,00,000/-. The Complainant also stated that SBI’s credit card collection team repeatedly called him from different numbers demanding him to pay Rs.4,09,000/- and refused to release his FD amount of Rs.11,00,000/- held with the same branch.
Case No.147/2023 dt.04-08-2023
Mr. Manikanta filed a consumer case in Dakshina Kannada District Consumer Disputes Redressal Commission in Mangaluru and notices were served on the OPs. SBI refuted Manikanta’s claims and contended that the Complainant had shared the sensitive information like CVV, OTP due to his negligence and there was no deficiency in service on its part.
Order
In its order, the consumer Commission cited the Reserve Bank of India (RBI)’s guidelines of customer protection limiting the liability of customers in unauthorised electronic banking transactions.
“Third-party breach where the deficiency lies neither with the bank nor with the customer but lies elsewhere in the system, and the customer notified the bank within three working days of receiving the communication from the bank regarding the unauthorised transaction,”
The Commission said the credit card department was informed about the calls on 12-04-2023 which was within the stipulated RBI guidelines of three days, and the complainant has ‘zero liability’. In finality, the Commission ordered that SBI must quash the alleged transaction in the Complainant’s account as well as the interest and penalty. The bank was also directed to pay Rs.20,000 for deficiency of service, mental agony, and inconvenience caused and Rs.10,000 towards litigation costs.
(Case No.147/2023 dt.04-08-2023 – Manikanta Vs. SBI Card and SBI )
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