Nagpur News
Nagpur Man Recovers ₹1.42 Lakh After Bank’s Negligence Leads to Online Scam
In a landmark judgment, the District Consumer Dispute Redressal Commission (DCDRC) in Nagpur directed DBS Bank to refund ₹1,42,763.56 to a customer who fell victim to an online fraud. The court held the bank accountable for poor service and failing to protect the customer’s confidential information, despite the fraud being reported promptly.The case involved Dr. Pradeep Rajderkar, a medical practitioner, who owned an unused DBS Bank credit card. On June 6, 2023, he received a call from a fraudster impersonating a bank representative, asking him to pay an insurance fee for card security. Trusting the caller, Dr. Rajderkar shared three OTPs. Shortly after, he was informed by email that his card had been blocked, but by then, the fraudster had already performed three unauthorized transactions totaling ₹1,42,763.56.
Despite reporting the issue to DBS Bank and filing a complaint with the Cyber Police, the bank refused to reverse the transactions. Dr. Rajderkar subsequently filed a complaint under Section 35 of the Consumer Protection Act, 2019, citing negligence and seeking a refund, compensation for distress, and legal fees.The bank argued that the customer had willingly shared his OTPs and that it bore no liability. However, the court referred to RBI guidelines on online fraud and ruled against the bank. It noted that the fraud was reported promptly, yet the bank failed to act responsibly.
The DCDRC, led by President Sachin Shimpi and members B.B. Chaudhari and Sheetal Petkar, ordered DBS Bank to refund the full amount with 9% annual interest from June 6, 2023, until payment. Additionally, the bank must pay ₹20,000 for mental and physical distress and ₹10,000 for legal costs.
RBI Guidelines on Fraudulent Transactions
As per an RBI circular (July 6, 2017), banks are liable for fraudulent transactions if reported within three days. Customers have ‘zero liability’ in cases where the bank is at fault due to fraud or negligence, or if a third-party breach occurs and the customer reports it within three working days.
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