Consumer panel orders Canara Bank to pay ₹5.04 lakh over unauthorised transactions
A Kalaburagi consumer commission directed Canara Bank’s Station Bazar branch to pay a customer ₹4.84 lakh, compensation and litigation costs after three unauthorised deductions. It held that the bank did not prove he had shared confidential credentials and said he had reported the transactions promptly.
The District Consumer Disputes Redressal Commission in Kalaburagi has directed Canara Bank’s Station Bazar branch to pay ₹4.84 lakh, with interest, to a customer whose account was subjected to three unauthorised transactions. The order, passed on September 29, followed a complaint by Siddayya Nandikol of Hirapur. The deductions—₹2 lakh, ₹2 lakh and ₹84,000—were made from his savings account on March 17, 2025.
Mr. Nandikol informed the bank and the Cyber Police on the same day. The bank argued that the transactions occurred because the customer had shared his one-time password and other account details.
It denied deficiency in service and sought dismissal of the complaint. The commission said the bank had not established through documentary evidence that Mr. Nandikol shared his OTP or confidential banking credentials.
It relied on Reserve Bank of India guidelines on customer protection in unauthorised electronic banking transactions and noted that the prompt reporting meant his liability was zero under the applicable guidelines. The commission also said banks must maintain systems and procedures, including fraud-detection and prevention mechanisms, to protect customers. It referred to a National Consumer Disputes Redressal Commission judgment stating that the burden of proving negligence or disclosure of confidential information lies with the bank.
The commission directed Canara Bank to pay ₹4.84 lakh with 6% annual interest from the complaint date, ₹15,000 compensation and ₹5,000 litigation costs. The amount, excluding the ordered interest on the transaction sum, totals ₹5.04 lakh. Payment was ordered within 45 days.
Non-compliance would attract 8% annual interest on ₹5.04 lakh from September 20, 2025.
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