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This is an archive article published on February 16, 2008

MRTPC to probe Citi in credit card case

Fair trade practices body Monopolies and Restrictive Trade Practices Commission has directed Citibank to inquire into and plug security...

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Fair trade practices body Monopolies and Restrictive Trade Practices Commission MRTPC has directed Citibank to inquire into and plug security loopholes in its electronic transaction platforms like ATMs, while initiating a probe against the bank after a customer was billed for cash he did not withdraw.

The MRTPC passed the direction on a complaint from a credit card customer of the bank that he was wrongfully billed for a cash withdrawal transaction of Rs 16,000, although he had never used the card in an ATM.

The customer Sukhbir Singh was shown as a defaulter by the bank, but he successfully proved that he never used his card. Following this, the Commission directed the bank to hire an expert to 8220;go over all aspects involved and ensure that the systems are properly immunised so that transactions on a banking system such as ATM cannot be done by unauthorised persons8230; to ensure credibility of the system8230;8221; It also said that it would initiate an inquiry of unfair trade practices against the banking giant and directed Citibank to file a compliance report within eight weeks. The bench was headed by chairman Justice O P Dwivedi.

 

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