The consumer commission determined that Bank of Baroda demonstrated a clear deficiency in service after Arun Kumar lost funds through unauthorised digital wallet transfers in July 2019. Despite receiving formal notices, the bank never appeared before the forum, leading the proceedings to continue ex parte from October 2023. Digital payments provider Paytm was cleared of liability after demonstrating that the transactions cleared through the bank's own system and that it had promptly frozen the recipient wallets. Under central banking regulations, the institution was mandated to refund the full missing balance alongside additional compensation.
Key points
A July 2017 Reserve Bank of India circular establishes that banks bear the burden of prov…: A July 2017 Reserve Bank of India circular establishes that banks bear the burden of proving customer liability for unauthorized electronic transactions reported within three days.
Lenders can be held fully liable for fraudulent debits if they cannot produce internal in…: Lenders can be held fully liable for fraudulent debits if they cannot produce internal inquiry records proving customer negligence or identifying the fund recipient.
Intermediary payment platforms may be absolved of financial liability if they prove trans…: Intermediary payment platforms may be absolved of financial liability if they prove transactions were validated by the issuing bank's infrastructure.
Sources checked by our analysis pipeline: 1
NEW DELHI: The West Delhi district consumer commission has held
Bank of Baroda guilty of deficiency in service after it failed to establish a customer’s role in unauthorised transactions worth Rs 38,649 from his bank account. The commission directed the bank to refund the amount and pay Rs 15,000 as compensation.
In its October 21, 2026, order, the commission said the bank had failed to produce investigation records or establish who received the money withdrawn from the customer’s account.
Money withdrawn through four transactions
According to the commission order, Arun Kumar, a resident of Shiv Vihar in west Delhi, maintained a bank account with Bank of Baroda’s Vikas Puri branch. He alleged that unauthorised transactions took place from his account on July 15, 2019, without his consent.
Kumar said he had not received any one-time password (OTP) or SMS alert on his registered mobile number for the transactions. The complaint listed four transactions through
Paytm, involving Rs 9,999, Rs 10,690, Rs 11,680 and Rs 6,280, taking the total to Rs 38,649.
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