Winning Bizness Desk
Mumbai.A major update regarding India’s largest bank, SBI, has emerged as the Supreme Court reprimanded the bank and ordered it to pay ₹94,000 to a customer. The case revolves around an online fraud incident. Why was SBI reprimanded, and what led to this verdict? Here’s the full story.
The Incident
The case involves a man from Assam who purchased a Louis Philippe blazer in 2021. Dissatisfied with the product, he decided to return it. Unfortunately, the Louis Philippe website was hacked, and a fraudster contacted the customer, claiming to be a representative from their customer service. The fraudster instructed him to install a specific app to process the return. Upon installing the app, the victim’s bank account was wiped clean.
The man immediately contacted SBI’s helpline and registered a complaint. While the bank blocked his card and account, the fraud had already occurred. He subsequently filed an FIR at Jalukbari Police Station and lodged three complaints with Assam Police’s cybercrime cell. When no significant progress was made, he approached the RBI Ombudsman, then Guwahati High Court, and ultimately the Supreme Court.
SBI’s Lack of Action
The fraud involved a significant amount of ₹94,000. Despite this, SBI failed to take concrete action. The bank neither registered a complaint with the cybercrime department nor initiated a chargeback request. Instead, it held the customer responsible for the fraud. SBI argued that since the fraud occurred through Google Pay, a third-party app, the bank couldn’t be held accountable. SBI emphasized that it does not endorse the use of third-party apps.
Supreme Court’s Verdict
Refusing to give up, the customer pursued legal action against SBI. After losing at the RBI Ombudsman, he found justice in the Guwahati High Court and later the Supreme Court. Both courts ruled in his favor and directed SBI to refund the entire amount of ₹94,000.nThe Supreme Court criticized SBI for failing to prevent cyber fraud despite having advanced technology. It emphasized that the bank should have acted promptly when the customer reported the fraud within 24 hours. The court upheld the Guwahati High Court’s ruling, reiterating that SBI’s inaction contributed to the financial loss.
This judgment serves as a reminder for banks to strengthen their cybersecurity measures and respond swiftly to customer complaints, ensuring better protection against online fraud.
