The Punjab National Bank (PNB) has been found responsible for service deficiencies by the District Consumer Disputes Redressal Commission-VII, Southwest Delhi. The bench, including Suresh Kumar Gupta (President) and Ramesh Chand Yadav (Member), ordered PNB to repay Rs. 1,00,000/- and compensate with an additional Rs. 15,000/-, due to its poor handling of unauthorized transactions from a customer’s account.
Here’s a quick rundown of the case:
The customer reported unauthorized withdrawals from his PNB account totaling Rs. 1,00,000/- that occurred on the 20th, 23rd, and 26th of September 2012. One such transaction of Rs. 25,000/- was supposedly made from two different ATMs located at SR International School, Najafgarh, a transaction the customer claimed he did not authorize. Despite lodging complaints with PNB, the local police station, and the Banking Ombudsman, the customer received no satisfactory response, leading him to file a consumer complaint against PNB.
PNB, in defense, suggested that either the customer himself or someone with his ATM card and PIN made the withdrawals. The bank pointed out that the withdrawals followed a pattern consistent with the customer’s usual transactions.
The District Commission, however, expressed skepticism about the customer’s role in these transactions. They highlighted the unlikely scenario of him making multiple withdrawals from different ATMs in such a manner, suggesting that he may not have authorized these transactions.
The Commission also noted the lack of CCTV footage or video evidence from the ATMs, evidence that could have helped identify the person behind the transactions. PNB’s inability to provide this evidence, along with its slow response to the customer’s complaints, raised doubts about the bank’s handling of the incident and commitment to transparency.
Another point of contention was the lack of SMS alerts on the customer’s registered mobile number, which could have alerted him to these unauthorized transactions. The Commission held that even if a third party conducted the unauthorized withdrawals, PNB still bears responsibility for the security of the customer’s account.
In conclusion, the District Commission found PNB guilty of service deficiencies for failing to investigate the matter thoroughly and preserve crucial evidence. Consequently, PNB was ordered to refund the disputed amount of Rs. 1,00,000/- with a 7% interest from the date of the complaint filing. In addition, PNB was directed to pay Rs. 15,000/- as compensation for the customer’s mental distress and harassment.
This case serves as a reminder to all financial institutions about the importance of prompt and thorough investigations into unauthorized transactions, as well as the need for transparency and adequate security measures in protecting consumers’ accounts.
