North Delhi District Commission Holds Union Bank Of India And PNB Liable For Failure To Provide CCTV Footage To Investigate Failed ATM Transaction

Brief Facts:

Mr. Muzammil (“Complainant”) maintained a savings account with Union Bank of India, formerly Andhra Bank. On 11/01/2022, at approximately 13:14:45 hrs, the Complainant used the ATM of Punjab National Bank (“PNB”) located at Turkman Gate, Delhi, to withdraw Rs. 10,000/-. Subsequently, in an attempt to withdraw an additional Rs. 10,000/-, the second transaction yielded no cash, accompanied by an error remark stating "Out of service." Despite the absence of cash in the second transaction, the Complainant's account was debited for the amount. Later, the Complainant lodged a written complaint at the home branch but received no acknowledgement.

Efforts to resolve the issue included a visit to PNB, where the Complainant requested CCTV footage. However, the request was declined, with the explanation that the CCTV footage could only be provided to Union Bank of India upon their demand. The Union Bank of India conveyed that his claim was taken up with PNB but no CCTV footage was provided.

A legal notice was sent by the Complainant to PNB and Union Bank of India, demanding CCTV footage of the ATM and photographs of the disputed transaction. However, neither a reply nor compliance was received by the Complainant. Feeling aggrieved, the Complainant approached the District Consumer Disputes Redressal Commission-I (North District) (“District Commission”) and filed a consumer complaint against Union Bank of India and PNB.

Observations by the District Commission:

The District Commission noted that the Complainant expeditiously informed Union Bank of India about the failed ATM transaction. Subsequent communication between Union Bank of India and ATM Cell through emails revealed that no action was taken on the complaint.

The District Commission held that even PNB failed to comply with the directives in the Digital Banking Division Circular No. 10/2019, which mandates the preservation of CCTV footage for disputed transactions. Additionally, the National Payments Corporation of India (NPCI) Circular NPCI/2012-13/NFS/2737 stipulates the provision to supply ATM logs for three transactions before and after the disputed transaction, along with CCTV images, which PNB failed to supply.

The District Commission held that there was an obligation for banks to provide a copy of CCTV footage to the Complainant. It held that the non-supply of CCTV footage to the Complainant constituted a deficiency in service.

Therefore, the District Commission held that the acts/omissions of Union Bank of India and PNB amounted to a deficiency in service. Consequently, Union Bank of India and PNB were jointly and severally held liable to pay Rs. 10,000/- debited on account of the failed transaction, along with an interest of 9 per cent per annum, and a compensation of Rs. 15,000/- for mental agony and harassment caused to the Complainant.