Bank told to pay ~8.30 lakh to eating joint

Ishrat S Banwait

Tribune News Service

Chandigarh, August 13

For activating the fund transfer option and thus allowing three unauthorised transactions, the Vijaya Bank has been told to pay Rs 8.30 lakh. The consumer forum here passed the order on a complaint filed by Sector 9-based ‘Foodbury’.

According to the complaint, Foodbury had opened a current account with the bank and had given a written request “to activate V-NET banking facility with a specific mention that fund transfer option is not required.” However, the bank activated the fund transfer, but not the V-NET facility, states the complaint.

As a result, there were three unauthorised withdrawals amounting to Rs 7.65 lakh. The food joint made efforts to get the money back, but in vain. It, thus, approached the consumer forum.

The bank, in its reply on July 7, 2015, said the net banking facility was made available on the request of the complainant. It was asserted that there were three transactions made by the complainant on January 13, 2016. The bank said the complainant was aware of the same through messages delivered on his registered mobile, but preferred to lodge a complaint on January 20, 2016.

The forum observed that Foodbury had sent a specific request as claimed and the bank allowed the transfer. The order reads, “...the RTGS/NEFT withdrawals from the account of the complainant are not only illegal, but contrary to the specific instructions of the complainant.”

The order further says that according to an RBI circular, there was a provision of compensation to customers in case of erroneous debits arising on illegal transaction. It adds that the bank “did nothing to mitigate the grievance of the complainant in spite of repeated requests and rather made him to run from pillar to post to get his money back.”

The forum thus directed Vijaya Bank to refund Rs 7.65 lakh to Foodbury and Rs 50,000 as compensation for mental agony and harassment, along with Rs 15,000 as costs of litigation.

The order

The forum observed that Foodbury had sent a specific request as claimed and the bank allowed the transfer. The order reads, "...the RTGS/NEFT withdrawals from the account of the complainant are not only illegal, but contrary to the specific instructions of the complainant."