The state consumer commission here has directed Bank of India to pay Rs 5 lakh as compensation to a senior citizen for "deficiency in service" related to unauthorised ATM transactions.
In its recent order, the State Consumer Disputes Redressal Commission emphasised that for elderly and less-literate customers, the standard of care expected from the service provider is "naturally higher".
It also noted that the "determination of deficiency in consumer jurisdiction does not proceed on the footing that every unauthorised transaction automatically fastens liability on the bank."
However, at the same time, banks have a corresponding duty to adhere to basic security protocols when issuing and activating ATM-cum-debit facilities, it remarked.
"In cases involving elderly customers with limited literacy, the standard of care expected from the service provider is naturally higher, and strict compliance with safeguards becomes all the more material," the commission stated.
The complainant, a 65-year-old housewife with formal education up to Standard IV, opened a savings account with the bank in May 2010.
She alleged that her account, which contained funds from the sale of her residential property, was depleted of Rs 12,47,402 through unauthorized ATM cash withdrawals used for purchases such as gold jewellery, wines, television set and other goods. The complainant approached the commission alleging deficiency in banking service due to lapses in issuing/handling the ATM-cum-debit facility and safeguarding of the funds. The bank, however, categorically denied any deficiency and contended the account was opened as per norms.
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