Retired Principal Swindled of ₹3.73 Lakh; High Court Orders SBI to Refund the Amount

In Kerala, a retired college principal lost ₹3.73 lakh from her account after sharing an OTP during a cyber-fraud incident. The Kerala High Court has now ordered the State Bank of India (SBI) to refund the amount.

Nowadays, cyber-fraudsters employ various tactics to ensnare victims—sometimes by creating fear that a bank account will be closed, or by requesting personal information under the pretext of reactivating a debit card. In one such instance, ₹3.73 lakh was siphoned off from the account of a retired college principal in Kerala.

The Kerala High Court has directed the State Bank of India (SBI) to return the funds. The court observed that the bank failed to prove any negligence on the part of the woman; therefore, it is obligated to compensate her for the loss. Let us examine the details of the case.

What is the case about?

The incident dates back to 2019. On July 13, 2019, the woman received a message stating that her debit card had been blocked and could be reactivated online. Shortly thereafter, she received a phone call from the same number. The caller, claiming to be a bank employee, requested an OTP to "reactivate" the card. The woman shared the OTP, and soon after, approximately ₹3.73 lakh was withdrawn from her account.

Woman files a complaint immediately after the loss

Upon discovering the unauthorized withdrawal, the woman promptly contacted the bank’s customer care, leading to the blocking of her internet banking account. She also filed formal complaints with both the bank and the police on the same day. A police investigation conducted months later revealed that an individual from West Bengal had used her personal information to carry out the theft.

Despite this, the woman did not receive a refund, prompting her to escalate the matter by filing a complaint with the Banking Ombudsman. However, when she failed to get relief even from the Banking Ombudsman, the woman approached the Kerala High Court.

Why did the High Court order SBI to return the money?

During the hearing, the Kerala High Court observed that the woman had filed a complaint as soon as she became aware of the fraud. Furthermore, the police investigation did not indicate any involvement on her part in the fraudulent activity. Meanwhile, the bank also failed to prove that the loss occurred due to any negligence on the woman's part. Consequently, citing RBI guidelines, the Court directed the bank to refund the sum of Rs 3,73,000 to the woman within four weeks.