North Delhi District Commission Holds PNB Liable For Violating RBI Guidelines On Reversal Of Unauthorised Transaction

Brief Facts:

Abdul Jalil (“Complainant”) had a bank account with Punjab National Bank (“PNB/Bank”) for the past five years. In December 2018, at approximately 13:07:05 hours, the Complainant received a notification from PNB indicating a debit of Rs. 10,000/- from his account. Subsequently, at 13:07:56 hours, another message notified the Complainant of an additional debit of Rs. 10,000/-. In response, the Complainant promptly contacted customer care, requesting the blockage of his ATM card. The request was confirmed by the bank via a message at 14:27 hrs. The Complainant then visited a PNB branch where he was informed by the manager that the complaint had been registered, and the debited amount would be reversed within 48 hours. However, when the funds were not credited even after a week, the Complainant contacted the manager again but received no satisfactory reply. A few days later, the Complainant wrote a written complaint to the bank but again didn't receive any reply. Feeling aggrieved, the Complainant filed a consumer complaint in the District Consumer Disputes Redressal Commission-I, North Delhi, Delhi (“District Commission”).

In response, the Branch Manager of PNB filed a written statement denying the allegations, asserting that the complaint was false and frivolous. He claimed that the transaction was successful as per the Complainant's account statement and argued that the Complainant's use of the issued ATM and private password was necessary to complete the transactions. He further acknowledged the blocking of the ATM card upon the Complainant's request and contended that there was no deficiency in their service.

Observations by the Commission:

The District Commission referred to Notification No. RBI/2017-18/15 DBR. No. Leg. BC.78/09.07.005/2017-18 dated 06/07/2017, issued by the Reserve Bank of India on "Customer Protection-limiting Liability of Customers in Unauthorized Electronic Banking Transactions" which places an obligation of the customer to report unauthorized transactions to the bank. The District Commission observed that the Complainant duly fulfilled this requirement. Further, the District Commission held that the bank must credit the amount involved in the unauthorized transaction to the customer's account within 10 working days from the date of notification by the customer. It emphasized that the burden of proving customer liability in the case of an unauthorized electronic banking transaction lies with the bank.

In the instant case, the District Commission held that PNB didn't comply with the directives issued by the Reserve Bank of India. Further, it noted that the bank neither credited the shadow reversal nor provided any document, such as an investigation report or communication with IndusInd Bank (whose ATM was used), to demonstrate any negligence on the part of the Complainant. Mere assertions of the Complainant's negligence and the success of the transaction based on the account statement, lacking concrete documentary evidence, do not absolve the bank of its duty. Consequently, the District Commission held PNB liable for deficiency in services due to non-compliance with the Reserve Bank of India's directions and the failure to address the Complainant's grievances.

Therefore, the District Commission directed PNB to pay Rs. 20,000/- to the Complainant for the debited amount due to unauthorized transactions. Additionally, it also directed the bank to pay a compensation of Rs. 10,000/- to the Complainant for mental harassment, agony and litigation expenses incurred by the Complainant.

Case Title: Abdul Jalil vs Branch Manager, Punjab National Bank

Case No.: Consumer Complaint No. 008/2019

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