Thane: Consumer Commissioner Directs Bank To Waive ₹2 Lakh Fraudulent Credit Card Transaction

The Thane Additional District Consumer Dispute Redressal Commissioner has directed RBL bank to waive the overdue credit card amount ₹2,05,955 along with interest as the transaction was fraudulent and the bank failed to provide safety and security to the customer or holder of the credit card.

The commission also directed to pay a compensation of ₹10,000 for the consumer’s mental anguish and an additional ₹10,000, for the cost of the litigation.

Advocate Vivek Sharma represented a credit card holder, a senior citizen Subrata Saha, a resident of Belapur in Navi Mumbai. On November 24, 2021, the complainant discovered unauthorized transactions under the name of Payu Pay Gurgaon.

Complainant had shared OTP

The bank contended that online transactions necessitated a combination of security elements, with any negligence on the customer’s part making them liable for unauthorized transactions. They argued that the complainant had shared OTP with a third party, thereby absolving themselves of responsibility.

Advocate Vivek Sharma presented a compelling case, underscoring the bank's duty to protect its customers from unauthorized transactions. He cited precedent cases, RBI guidelines, and the bank's failure to conduct a proper investigation into the alleged fraudulent transactions. Advocate Sharma emphasized that in cases involving fraudulent transactions, the primary responsibility rests with the bank and not with the consumer. Banks cannot simply absolve themselves of their obligation to maintain secure and safe security measures and facilities for their customers.

Bank never made any efforts to enquire or investigate the fraudulent transactions

The commissioner found that the bank did not check with the opposite bank where the money was transferred. The commission observed that the bank never made any efforts to enquire or investigate the fraudulent transactions. It stated that the bank is bound to provide service to the customer and in this case, the bank has failed to provide proper service to the complainant or customer.

“In a resounding verdict, the consumer forum ruled in favour of the consumer, declaring the bank’s actions deficient in service and unfair trade practices,” said Advocate Vivek Sharma.