SBI told to refund Rs 1.59 lakh with 9% interest after 68-year-old who never activated his ATM card lost money through multiple AePS transactions

A 68-year-old State Bank of India (SBI) customer, who said he had never activated his ATM card or used internet and mobile banking, was left with nearly Rs 1.6 lakh missing from his savings account after a series of unauthorised Aadhaar Enabled Payment System (AePS) transactions. The District Consumer Disputes Redressal Commission in Rajkot has now directed SBI to refund the entire amount, along with 9% annual interest and Rs 10,000 towards litigation expenses. The commission held the bank responsible for deficiency in service and delay in addressing the customer's complaint.

SBI customer says Rs 1.59 lakh was withdrawn without his knowledge

According to a TOI report, the complainant, Dilip Chatwani, held a savings account with SBI's Amin Marg branch in Rajkot. He told the consumer commission that he had never activated or used the ATM card linked to his account. He had also not opted for internet or mobile banking and said he used only cheques to carry out banking transactions.

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Despite this, a total of Rs 1,59,999 was withdrawn from his account through multiple AePS transactions between September 17 and September 25, 2023. Chatwani maintained that he had neither authorised the transactions nor shared any one-time password (OTP) or given consent for the withdrawals.

Senior citizen approaches SBI and cyber crime cell

After noticing the unauthorised withdrawals, Chatwani submitted a written complaint to the SBI branch on September 26, 2023. He also approached the cyber crime cell on the same day, seeking action over the missing funds.

According to advocate Chirag Chhag, who represented Chatwani, the cyber crime cell's inquiry indicated that the transactions had been authorised by bank official personnel. Chatwani subsequently approached the consumer commission, alleging that the bank had failed to protect his money and resolve the matter despite being informed promptly.

Rajkot consumer commission finds SBI guilty of deficiency in service

A bench comprising commission president P C Raval and member M S Bhatt ruled in favour of Chatwani. The commission found SBI liable for deficiency in service and delay, observing that the senior citizen had been deprived of his legitimate funds despite raising the issue immediately after discovering the withdrawals.

The commission also referred to Supreme Court precedents concerning compensation for consumers who are deprived of their legitimate money because of a deficiency in service. It held that such consumers are entitled to compensation in the form of interest.

SBI directed to refund Rs 1.59 lakh with 9% annual interest

The Rajkot consumer commission has directed SBI to credit Rs 1,59,999 to Chatwani's savings account, along with annual interest of 9%. The interest will be calculated from the date he filed the consumer complaint until the amount is repaid. The bank has also been ordered to pay Rs 10,000 towards litigation expenses.


Inputs from TOI