SBI Ordered to Refund Rs 1.26 Lakh for Unauthorized Credit Card Deductions

A man named Rupinder Singh from Yamuna Nagar had a savings account with the State Bank of India (SBI) and a credit card issued by SBI Cards.

He claimed he never activated the credit card or used it for any transactions.

However, starting in February 2022, SBI began deducting money from his savings account towards credit card dues.

In August 2022, he discovered two large transactions made in Mumbai that he believed were unauthorized.

He complained to the bank, but they did not respond.

He then took his case to the Haryana District Consumer Commission.

The commission found that SBI and SBI Cards did not provide any evidence to show that the credit card was activated or that the transactions were authorized.

They also noted that the bank deducted only partial amounts from his savings account instead of the full outstanding amount.

The commission ordered SBI to refund Rs 1.26 lakh and pay Rs 11,000 in compensation for mental agony and litigation costs.

This case highlights the importance of banks maintaining proper records and investigating fraud complaints promptly.