Uttarakhand Consumer Commission Exonerates Bank and Payment App in Fraud Case
In a significant ruling, the Uttarakhand State Consumer Disputes Redressal Commission has overturned a district commission's order that had directed Punjab National Bank (PNB) to refund money debited from a customer's account in an alleged online fraud case. The state commission firmly held that neither the bank nor Google Pay (GPay) was responsible for the financial loss, attributing it instead to the customer's own negligence.
Case Background: Customer's Claim of Unauthorized Transactions
The case originated from Haridwar resident Sachin Kumar, who filed a complaint alleging that on November 26, 2020, he attempted to transfer Rs 25,000 to an individual named Mohit using the GPay application. According to Kumar, the transaction did not proceed successfully, yet the amount was deducted from his PNB account without being refunded.
Kumar further claimed that two days later, he received a message, after which multiple unauthorized transactions occurred, resulting in a total debit of Rs 1,06,500 from his bank account. After receiving no relief from the bank following his complaint, Kumar approached the district consumer commission for resolution.
District Commission's Initial Ruling and Subsequent Appeal
In March 2021, the district consumer commission ruled in Kumar's favor, directing Punjab National Bank to refund the entire amount. The district commission held the bank responsible for the loss incurred by the customer.
PNB challenged this order before the Uttarakhand State Consumer Commission. During the state commission proceedings, a crucial admission emerged: the complainant acknowledged that all the transactions in question were carried out by him from his own mobile handset.
State Commission's Detailed Reasoning and Final Verdict
The state commission emphasized that it is the fundamental duty of every customer to take proper care of their mobile device and personal banking credentials. The commission stated that if a customer fails in this duty, they cannot shift the burden or blame onto the bank or digital payment platform for transfers made from their account.
In its detailed order issued on Friday, the commission specifically noted: "To initiate e-transactions through GPay, a password is needed, and without entering the correct password, the transaction is not completed and the amount is not transferred to the beneficiary. Thus, it can safely be said that the complainant did the transactions with open eyes."
The state commission further criticized the district commission's earlier judgment, stating: "We are of the considered opinion that the district commission did not properly consider the material available on record and committed a manifest error of law while allowing the consumer complaint as per the impugned judgment and order."
Consequently, the Uttarakhand State Consumer Commission set aside the district commission's order, fully exonerating both Punjab National Bank and Google Pay from any liability in this case. This ruling establishes a significant precedent regarding customer responsibility in digital banking transactions and the limitations of financial institution liability in cases where customer negligence is demonstrated.
