Scam: SBI will now pay this person ₹99,940 after a theft via UPI transaction; what is the whole matter?

A case has come to light in Chandigarh, where a man was defrauded through UPI. He lost ₹99,940 in this fraud. The State Bank of India is now going to compensate him for the fraud. Based on which rule did the Chandigarh Consumer Commission decide in the man's favor?

What is the whole matter?
Sanjeev Kumar Sharma had a savings account at a State Bank of India branch in Chandigarh. On July 21st, at 2:50 pm, Sanjeev Kumar Sharma's mobile phone received a series of UPI transaction messages. Suddenly, Sanjeev's account was debited three times for ₹25,060, once for ₹24,560, and ₹200.

A total of ₹99,940 was debited from Sanjeev's account. Sanjeev took immediate action. First, he reported the fraud and closed both his account and mobile number. Sanjeev also filed a complaint with the cyber cell and the bank.

The bank registered his complaint at that time and assured him of prompt action. He was also told that his money would be returned within 15 days of the action.

But several days passed, and Sanjeev repeatedly contacted the bank and inquired about the action. He received no response. Frustrated, Sanjeev filed a complaint with the Chandigarh Consumer Commission.

What did the bank say?
The bank argued that the money was transferred via UPI. UPI transactions are not possible without a UPI PIN, and therefore, the bank had no involvement in the matter. The bank also denied any service deficiencies and requested the dismissal of the complaint.

What did the Consumer Commission decide?
The Commission ruled in favor of the customer. The Commission cited an RBI circular issued on July 6, 2017, in this case. The Commission also cited several decisions by the National Consumer Disputes Redressal Commission and the Bombay High Court.

The Commission held that if a third party conducts an illegal transaction, the customer is not responsible for the loss, regardless of whether the bank is at fault. The Commission also ordered the State Bank of India to compensate Sanjeev (the customer) for the loss he suffered.

The Commission further ordered the bank to pay Sanjeev ₹99,940 and 9% interest from the date the loss arose.

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