SBI Cards must refund ₹15,000 with interest and compensation after a Delhi consumer commission found it failed to prove customer negligence or respond within required timelines following two unauthorised transactions.
A Delhi consumer commission has held SBI Cards & Payment Services responsible for failing to respond properly after a customer reported two unauthorised transactions on his credit card, a ruling that reinforces the protections available to cardholders who act quickly after suspected fraud. In Rakesh Kumar v. SBI Cards & Payment Services, the commission said the company had not shown that Kumar was negligent, had not issued provisional credit in time and had not resolved the complaint within the required period. The order directed SBI Cards to refund ₹15,000, pay 7% annual interest and provide ₹10,000 in compensation.
The dispute arose after Kumar’s card was hit by two charges totalling ₹15,000 on May 23, 2024, when he was trying to buy butter through an online promotion using the Big Bazaar name. According to the account reported by Business Standard, Kumar immediately flagged the transactions, blocked the card and lodged a cybercrime complaint. The commission accepted that prompt action mattered and found that the issuer had not produced evidence showing that Kumar had shared his details or otherwise caused the loss.
The ruling also fits within the Reserve Bank of India’s framework on customer liability in unauthorised electronic transactions. Under those rules, banks and card issuers must acknowledge complaints quickly, provide a provisional credit within 10 working days in fraud cases and decide liability within 90 days. Legal commentary cited in the Business Standard report says the customer’s exposure depends heavily on how quickly the incident is reported and whether the bank can prove negligence or voluntary sharing of credentials. Consumer-law reporting on the same case said the commission placed the burden of proving customer fault on the card issuer.
The judgment is a reminder that card disputes are not all the same. Some involve outright fraud, while others stem from duplicate billing, incorrect amounts, undelivered goods or refunds that never arrive. Lawyers quoted by Business Standard said customers should preserve transaction alerts, statements, complaint numbers and screenshots, and should follow up in writing after any phone call. They also noted that a cybercrime complaint does not replace a direct complaint to the card issuer. For consumers, the key lesson is straightforward: report unauthorised charges immediately, keep careful records and do not assume the bank can shift liability without evidence.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
