SBI account drained of ₹80,000! Bank ordered to pay ₹1.30 lakh after key evidence was missing

The Delhi State Consumer Disputes Redressal Commission has upheld an order directing the State Bank of India (SBI) to pay ₹1.30 lakh to a customer after four unauthorised ATM withdrawals and two fund transfers drained ₹80,000 from his account in 2018. The commission dismissed SBI’s appeal against the district consumer commission’s August 2023 order, holding that the bank failed to preserve and produce crucial transaction records, including CCTV footage.

₹80,000 withdrawn without customer’s knowledge

The customer maintained an SBI account since 2002, into which his salary as a government-school lab assistant was credited. On October 10, 2018, he withdrew ₹ 5,000 from an SBI ATM. His account subsequently had a balance of ₹ 1,12,472, while another ₹ 17,540 was credited on October 11.

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However, when he attempted to withdraw money on October 22, the transaction failed because of insufficient funds. After updating his passbook, he discovered that four ATM withdrawals of ₹ 20,000 each totalling ₹ 80,000 had been carried out on October 12. The account also showed two transfers of ₹ 40,000 and ₹ 10,000 to an account belonging to a person named Sonu.

Customer complained to SBI, police

The customer immediately approached SBI on October 22, 2018, and submitted a written complaint seeking recovery of the money. He also lodged an FIR at the Mayur Vihar Phase-I police station the same day.

He later wrote to SBI again on March 6, 2019, but claimed that he received no satisfactory response or meaningful investigation from the bank. He subsequently approached the consumer commission.

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SBI failed to produce CCTV footage

The State Commission bench comprising Justice Sangita Dhingra Sehgal and member Bimla Kumari said the customer had approached the bank promptly and specifically asked it to verify the disputed transactions and provide CCTV footage.

“However, despite the complaint having been lodged within a reasonable time, the Appellant neither secured nor produced the CCTV footage before the District Commission or before this Commission,” the bench observed.

The commission further noted that SBI, as custodian of electronic transaction logs, ATM journals, switch records and authentication details, was in the best position to establish whether the transactions were properly authorised. “However, no such material has been filed by the Appellant,” the commission said.

SBI ordered to pay ₹ 1.30 lakh

The commission also noted that the customer had said his debit card was never lost or handed over to anyone. It therefore said SBI should have examined possibilities such as card cloning, skimming, ATM compromise or a technical issue.

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The commission upheld the order directing SBI to pay ₹ 1.30 lakh with 6% annual interest from October 12, 2018. The bank was also directed to pay ₹ 5,000 for mental agony and ₹ 5,000 towards litigation costs.

The State Commission held that SBI’s failure to investigate the complaints, preserve CCTV footage and produce records explaining the disputed transactions amounted to deficiency in service.