The State Bank of India (SBI) has been directed by the Delhi State Consumer Forum to refund a total of ₹20,000, with 10% annual interest, to a customer who was a victim of an ATM fraud incident that occurred 11 years ago. The bank has also been instructed to compensate the customer for legal and mental distress costs, following a prolonged legal pursuit for justice.
The case dates back to January 4, 2014, when customer Panwar attempted an unsuccessful cash withdrawal at an SBI ATM located at Guwahati Railway Station. Later, he received SMS alerts confirming three unexpected cash withdrawals of ₹1,000, ₹20,000, and ₹1,000 made using his debit card, which he had not authorised. After reaching Delhi, he approached SBI and lodged a formal complaint, demanding an investigation and CCTV footage, but received no response.
The customer escalated the matter to the RBI’s Banking Ombudsman, facing administrative delays, including a misplaced complaint. Eventually, Panwar approached the Delhi District Consumer Forum in 2014, where he alleged a deficiency in service on the bank’s part due to negligence, ultimately demanding a refund.
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In 2017, the Delhi District Consumer Commission ordered a refund of ₹20,000 with 10% annual interest from the day of the incident. The verdict also included ₹5,000 for litigation costs and ₹10,000 as compensation for mental distress. SBI appealed the decision to the Delhi State Consumer Forum, which upheld the district order in May 2025, citing no procedural faults.
This case reinforces the importance of immediate action and vigilant tracking when confronted with banking fraud. Prompt complaint submissions play a significant role in achieving successful resolution through consumer protection forums.
On July 11, 2025, State Bank of India share price opened at ₹807.55 on NSE, below the previous close of ₹808.00. During the day, it surged to ₹812.50 and dipped to ₹806.15. The stock is trading at ₹810.00 as of 9:56 AM.
Over the past week, it has moved up by 0.39%, over the past month, it has moved up by 2.23%, and over the past 3 months, it has moved up by 9.61%.
The SBI ATM fraud case underlines the accountability of financial institutions in handling unauthorised transactions. The forum's judgment sets a precedent, holding the bank responsible for refund and due compensation after an 11-year fight for redressal.
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Published on: Jul 11, 2025, 1:07 PM IST
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