Bank fails to act after woman flags ‘cyber fraud’ in account, she wins Rs 1 lakh payout

A woman in Chhattisgarh filed a complaint against State Bank of India (SBI) for allegedly failing to act on her report of unauthorized online transactions totaling nearly Rs 1 lakh, and the Raipur District Consumer Disputes Redressal Commission has directed the bank to refund the amount with interest. The bench of the commission awarded the woman Rs 1 lakh with interest, Rs 10,000 for mental agony and Rs 5,000 for litigation expenses.

According to the Reserve Bank of India (RBI) guidelines, the bank was required to refund the disputed amount as the woman had immediately reported the unauthorized transactions to the police and the bank within three working days. However, the bank failed to freeze the funds and take appropriate action, resulting in deficiency in service and unfair trade practice.

The woman reported the unauthorized transactions on March 30, 2019, to the Cyber Cell and informed the bank in writing on April 2, 2019, asking for reversal of the transactions and legal action. Despite receiving the complaint, SBI did not take any action, which the commission deemed a deficiency in service.