Chandigarh

SBI Cards penalised after customer complains of unauthorised transaction

October 25, 2018 12:08 PM

Punjab News Express
CHANDIGARH: The State Bank of India (SBI) Cards has been penalised on account of a customer’s complaint of unauthorised transaction.

The district consumer disputes redressal forum has directed SBI Cards and Payment Services Private Limited, Mumbai, to reverse the amount of Rs 40,000 into Chandigarh resident Vishal Sabharwal’s account and pay another Rs 5,000 as credit to him.

On October 27, 2017, “without his knowledge and acceptance”, an amount of Rs 39,999 was transferred from his credit card account to some unknown account by allegedly hacking his email id and credit card details.


Sabharwal, 33, of Sector 19, was issued a credit card, which he had been using “very cautiously with due care”.

The complainant told the forum that he repeatedly complained to the firm and asked it to stop the service of sending the one-time password (OTP) for authenticating transactions to his email id as he in any case was getting it on his mobile phone. However, the request was not met.

On October 27, 2017, “without his knowledge and acceptance”, an amount of Rs 39,999 was transferred from his credit card account to some unknown account by allegedly hacking his email id and credit card details.

Sabharwal immediately reported the matter and registered a service request with the SBI customer care. He also raised the issue with SBI Cards by mailing dispute forms dated October 30, 2017, and November 7, 2017, apart from filing a criminal complaint with the Chandigarh senior superintendent of police (SSP) on October 30.

The complainant submitted that the SBI on November 9, 2017, refused his claim and put the liability on him.

Following this, the complainant approached the Banking Ombudsman, Reserve Bank of India, who after investigation, advised SBI Cards to pay the disputed amount to him. However, the firm did not comply with the directions.

‘Followed norms, to no avail’

Sabharwal submitted before the consumer forum that according to settled banking laws, even as he timely informed the respondents about the unauthentic transaction, they did not pay any heed. Thereafter, a legal notice was also sent to them, but to no avail. Hence, a complaint was filed before the consumer forum.

Both the SBI, its local branch concerned and its customer services department jointly replied that they didn’t issue or offer the credit card in question, and it is only SBI Cards that issues and maintains credit cards.

SBI Cards filed a reply, admitting to the facts of the case, but stating the transaction was valid and it had been informed to the complainant.

Further, it was claimed the transaction was performed in a secured manner, as it was validated by the card security code (CVV) and dynamic OTP over the internet.

However, after listening to the arguments, the forum directed SBI Cards to pay the requisite amount to the complainant.

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