Bank of Baroda Ordered to Refund Rs 38,649 and Pay Compensation Over Unauthorised Transactions

A district consumer commission in West Delhi has held Bank of Baroda guilty of deficiency in service for failing to prove a customer's responsibility in unauthorised electronic transactions, directing the bank to refund Rs 38,649 and pay Rs 15,000 as compensation. The decision was detailed in an October 21, 2026, order.

According to the reported details, complainant Arun Kumar, a resident of Shiv Vihar in west Delhi, maintained an account at the bank's Vikas Puri branch. He alleged that on July 15, 2019, four unauthorised transactions totalling Rs 38,649 were conducted through Paytm without his consent or receipt of OTP/SMS alerts. Kumar stated that he lodged a police complaint on July 16, 2019, and subsequently approached the consumer commission in September 2020 after failing to resolve the matter with the bank.

Responses from Parties

• Bank of Baroda: Did not appear before the commission despite notice and faced ex parte proceedings in October 2023.
• Paytm: Argued it had no substantive role as funds were debited directly through the bank's system, noting that it had blocked relevant wallets and reported the transactions as fraudulent.

Commission's Findings and Directives

The bench, comprising president Sonica Mehrotra and members Richa Jindal and Anil Kumar Koushal, noted that the bank failed to produce investigation records or disclose beneficiary account details. Citing a Reserve Bank of India circular dated July 6, 2017, the commission emphasized that the burden of proving customer liability in unauthorised electronic transactions rests on the bank, and Kumar had reported the incident within the prescribed timeframe.

The commission absolved Paytm of liability and ordered Bank of Baroda to complete the refund and compensation payment within 30 days of receiving the order copy.

Practical Implications and Verification

• Consumers facing unauthorised electronic transactions should report incidents immediately to their bank and local law enforcement.
• RBI guidelines outline customer liability limits based on reporting timeframes.
• Original case details and orders can be verified through the relevant district consumer disputes redressal commission records.