Refund of fraud transactions: Victim wins decade-long case against PNB
A Railway Police Force (RPF) constable recently emerged victorious in a 10-year-long legal battle against Punjab National Bank (PNB) over an fraud transaction case, as reported by the Economic Times. The case dates back to 2013 when the constable lost ₹80,000 through eight unauthorized transactions between June 28-30. The transactions were done through a MobiKwik account but the said MobiKwik account didn't belong to the complainant. Although PNB had already reimbursed ₹70,000, a balance of ₹10,000 remained unsettled until now.
Court orders PNB to refund remaining amount
The district consumer court has now ordered PNB to refund the remaining ₹10,000 to the constable. In addition, the bank is required to pay an additional 9% per annum from June 30, 2013. The court also instructed PNB to pay ₹25,000 as compensation for the inconvenience caused over this decade-long legal battle.
Understanding customer liability in fraud transaction cases
In cases of fraud or negligence, if the bank is found to be at fault, customers bear no liability, regardless of whether they report the transaction. However, if the loss is due to customer negligence, they are liable for the entire loss until they report the unauthorized transaction. Any subsequent loss after reporting will be borne by the bank.
Reporting time frame and customer liability
Customers are advised to report any fraudulent activity within three working days to ensure zero liability. If reported within four to seven working days, liability would be either the transaction value or an amount specified in a table provided by the bank - whichever is lower. Beyond seven working days, customer liability would be determined according to the bank's approved policy.
