State Bank of India (SBI) has been strongly reprimanded by the Delhi State Consumer Commission in the case of an old ATM fraud. The commission has ordered the bank to give compensation of Rs 58,000 to its customer Mr. Panwar. This includes the original amount of Rs 20,000, 10% interest of 11.5 years, the cost of Rs 5,000 and Rs 10,000 for mental stress. This whole matter is of 2014, when money was withdrawn three times without his approval from Panwar’s SBI Debit Card at Guwahati railway station. After a long legal battle of 11 years, Panwar has finally received justice.
What is the whole matter?
The matter is on 4 January 2014. SBI account holder Shri Panwar in Delhi was at Guwahati railway station. He tried to withdraw Rs 1,000 from an ATM of SBI, but the transaction failed. Then he went to the ATM of the nearby Indian Overseas Bank and took out Rs 1,000 from there. After this, he boarded the train for Delhi. But just sitting in the train was that three SMS came from SBI on his phone. It was told in these messages that 1,000, 20,000 and then Rs 1,000 have been withdrawn from his debit card. These transactions were done from ATM number 414, ATM 8024 and ATM 40040 of Guwahati railway station. Panwar’s mind was baffled. After all, how did so much money go out of their card without their knowledge?
On reaching Delhi on 6 January 2014, Panwar filed a computerized complaint in SBI. The bank returned an amount of Rs 1,000 to his account, but started evasive for Rs 20,000. The bank said that the transaction of Rs 20,000 was successful, so it cannot be returned. Panwar did not give up. On 18 January 2014, he complained online and asked for CCTV footage of ATM of Guwahati railway station, so that he could not withdraw the money. But the bank neither gave the footage nor any concrete answer. Panwar went to the bank on 20 February 2014 and complained again, but there was no hearing there either.
Panwar then contacted RBI’s banking Ombdsman. Once his complaint was lost somewhere, he filed a complaint again. But there was no relief from there either. Finally, after losing, Panwar filed a case in Delhi’s District Consumer Forum. He said that the bank did not take his complaint seriously and his hard -earned money was stolen.
District Consumer Forum pronounced the decision
On 25 October 2017, the Delhi District Consumer Forum ruled in favor of Panwar. The forum cited the RBI rules, which clearly states that if an illegal electronic transaction is reported within three working days, the customer does not suffer any harm. It is applied under the “Zero Liability” and “Limited Liability” rules. The forum ordered SBI to give the original amount of Rs 20,000 to Panwar, 10% interest from 4 January 2014, Rs 5,000 for the case and Rs 10,000 mental problem. The forum also said that if this order is not implemented in 30 days, then the rate of interest will be 12%.
SBI was stubborn but got defeat
SBI did not like this decision. The bank filed an appeal in the Delhi State Consumer Commission against the decision of the District Forum. SBI claimed that Panwar did not introduce train ticket from Guwahati to Delhi, so it would not prove that he was in Guwahati at that time. The bank also said that due to the death of his then branch manager, he could not participate in the hearing. But the commission dismissed these arguments outright.
The commission said that Panwar introduced his bank statement, which clearly showed that 1,000, 20,000 and Rs 1,000 were transacted from ATM of Guwahati railway station. In such a situation there was no need to show the train ticket. The three SMS copy by the SBI also considered the commission to be right, because the bank could not prove that these messages were fake. The bank also claimed that Panwar himself withdraws Rs 20,000, but the commission said that the withdrawal limit had nothing to do with this case.
SBI also said that due to the death of his branch manager, he could not come to the hearing, but the bank did not even present the death certificate of the manager. The commission noticed that the bank was given a copy of the case on 29 May 2015 and two months were given to give a written reply. But no bank lawyer or representative came to the next hearing. The commission gave another chance, but even then the bank did not file any reply.
State commission gave final decision
On 7 May 2025, the Delhi State Consumer Commission justified the decision of the District Forum. The commission said that there is no mistake or irregularity in the order of the District Forum. SBI’s appeal was rejected. If SBI no longer appeals against this decision, then he will have to pay Rs 58,000 to Panwar. This includes the original amount of Rs 20,000, 10% interest of 11.5 years (Rs 23,000), Rs 5,000 case expenditure and compensation of mental problem of Rs 10,000.