State Bank of India has been ordered by the National Commission to refund an amount of Rs 5,07,017.22 to a customer named M.S. Bakankar for unauthorized transactions. Bakankar had a savings account with the bank and was issued an ATM card. In July 2017, he withdrew Rs 6,000 from an ATM, but later that day encountered a problem at another ATM while trying to check his balance. Two unknown individuals offered to help him but were unable to retrieve the balance. During this time, they secretly replaced Bakankar’s ATM card without his knowledge.
The following day, Bakankar received a call from the bank urging him to check his account due to suspicious transactions carried out with his ATM card. To his astonishment, Bakankar discovered that a total of Rs 5,07,017.22 had been withdrawn between July 27 and July 28, 2017, through various transactions. Bakankar promptly reported the incident to the local police and other relevant authorities. Despite not having shared his PIN, the illegal transactions surpassed the withdrawal limit of Rs 40,000 within 24 hours. Bakankar also alleged that the bank failed to send him SMS messages for the transactions. Consequently, he filed a consumer complaint.
The Gwalior District Forum reviewed the case and determined that both Bakankar and the bank were negligent. As a result, the forum ordered the bank to refund Rs 1,00,000 out of the total amount. Both parties appealed against this decision. The Madhya Pradesh State Commission acknowledged that the withdrawal limit of Rs 40,000 had been imposed after the disputed transactions took place, on October 10, 2017. However, considering the absence of SMS notifications, the commission concluded that the bank was still liable.
Bakankar then filed a revision petition. The National Commission referred to a circular issued by the Reserve Bank of India on July 6, 2017, which stated that customers would have zero liability for unauthorized transactions if the bank was partially at fault. Based on this, the National Commission directed the State Bank of India to refund the entirety of Rs 5,07,017.22, along with 8% interest.
In conclusion, the State Bank of India has been instructed by the National Commission to reimburse M.S. Bakankar for unauthorized transactions conducted using his ATM card. This case serves as a reminder of the importance of maintaining vigilance and reporting any suspicious activity promptly.
