Consumer Commission fined the branch manager of PSU Bank in ATM fraud case

The District Consumer Dispute Redressal Commission in Shamli has fined the branch manager of Punjab National Bank (PNB), Gadhipukhta a total of ₹55,153 in a case involving an unlawful withdrawal of ₹10,000.

Actual Case

A man named Rampal Singh, who lives in Rajhad village, filed a complaint on October 3, 2018 against two banks. (1)PNB Gadhipukhta Branch (2)ICICI Bank, Shamli Branch

He claimed to have a PNB Gadhipukhta savings account. He took out ₹10,000 from an ICICI Bank ATM in Shamli on July 23, 2018. He then had ₹2,062.59 remaining in his account. However, on July 24, 2018, he received an SMS warning stating that a further ₹10,000 had been taken out of his account while he was at home with his ATM card. He was perplexed by this and called his bank right away. He was instructed by the bank employees to make a complaint by calling the toll-free number. He claimed to have done so on August 3, 2018, but he never heard back. Later, on August 27, 2018, he even mailed a legal notice.

Meanwhile, on August 29, 2018, he received ₹16,044 in his account as a sugarcane payment. However, the bank only deposited ₹7,953 into his account after deducting ₹7,937 in costs and adjusting ₹153 (overdraft). When Rampal Singh visited the Shamli branch of ICICI Bank to view the CCTV footage, he was instructed to return in a week. The problem persisted even after multiple visits to the branch. He made a formal request to see the video on September 20, 2018, but once more, nothing happened.

Consumer Commission Decision

The Commission, which was chaired by Hemant Kumar Gupta and included members Amarjit Kaur and Abhinav Agarwal, heard the case and decided in favor of Rampal Singh. 

They issued the following directives: 

The withdrawn sum of ₹10,153 must be given back to Rampal Singh together with 12% simple interest. 

He will receive ₹20,000 for his financial, emotional, and physical suffering. ₹5,000 will be used to cover legal costs. 

For unfair practices and poor service, the bank was also fined ₹20,000, which will be paid to the government treasury rather than the complainant. 

The case describes how a customer lost money as a result of an unauthorized ATM withdrawal. The consumer court intervened and punished the bank for its carelessness after the bank failed to address the customer's numerous complaints.