ATM glitch: Consumer forum orders banks to pay Rs 15,000 to Ahmedabad man for ‘wrongfully’ debiting money
The case dates back to August 8, 2018, when Akhil Sukant Paul used his SBI ATM card to withdraw Rs 10,000 from a BOI ATM
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From 2018 till 2022, Paul continued complaining to both the banks but to no avail, Devendra Rana, Head of Legal Department, CERC, told The Indian ExpressThe Ahmedabad District Consumer Disputes Redressal Commission (Rural) has ordered two public sector banks to refund Rs 10,000 to a consumer, along with Rs 5,000 for mental harassment and litigation costs. The case dates back to August 8, 2018, when Ahmedabad city resident Akhil Sukant Paul used his State Bank of India (SBI) ATM card to withdraw Rs 10,000 from a Bank of India (BOI) ATM. Although the amount was debited from his account, the cash was not dispensed.
Paul’s case was taken up by the Consumer Education and Research Centre (CERC).
From 2018 till 2022, Paul continued complaining to both the banks but to no avail, Devendra Rana, Head of Legal Department, CERC, told The Indian Express.
“Despite repeated complaints and legal notices, the consumer faced years of delay in obtaining relief,” Rana added.
In March 2022, he complained against the SBI and the BOI through CERC for ‘wrongfully debiting’ Rs 10,000 from his account, when no cash was dispensed from the ATM. After examining the evidence, including bank statements, ATM slips, and affidavits, the Commission held both banks liable and issued directions “to refund Rs 10,000 with 6% annual interest from 19 March 2022 until full payment along with compensation of Rs 3,500 for mental harassment, Rs 2,500 towards litigation costs and compliance within 30 days of the order”.
In its order dated August 14, the Ahmedabad District Consumer Disputes Redressal Commission (Rural) directed the SBI and the BOI to refund Rs 10,000 wrongfully debited from Paul’s account. Welcoming the order, Devendra Rana said, “This judgment reinforces that banks cannot evade their responsibility to safeguard consumer funds. It also demonstrates that consumers have strong legal protection against financial malpractices. CERC remains committed to standing by consumers who face such challenges and ensuring that justice is effectively delivered.”
“This case highlights the effectiveness of consumer commissions as accessible forums for redressal. CERC, which has long championed consumer rights in sectors such as banking, insurance, healthcare, and housing, has reaffirmed its commitment to ensuring justice for aggrieved consumers,” Rana added.
“With the online banking sector growing, the CERC has been urging the consumers to remain vigilant and seek timely recourse through legal channels. The judgment sets a strong precedent, reminding banks that accountability to customers is non-negotiable,” CERC CEO Anindita Mehta said.
The order is a reminder to financial institutions that consumer protection laws are designed not only to address financial losses but also the emotional distress and inconvenience caused by negligent practices, Mehta added.
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