The Punjab State Consumer Disputes Redressal Commission has upheld an order directing a bank to refund Rs 72,495 with interest from June 4, 2019 to a Bathinda man whose savings account was allegedly hit by 11 unauthorised UPI transactions. The commission also ordered the bank to pay Rs 5,000 as compensation and Rs 5,000 towards litigation costs.Judicial member H P S Mahal and member Kiran Sibal upheld the June 1, 2023, order of the District Consumer Disputes Redressal Commission, Bathinda, in favour of Vijay Kumar.“The contention of the appellant/OP (bank) that the transactions were authenticated through MPIN and, therefore, the MPIN must have been disclosed or compromised by the complainant, by itself, is not sufficient to fasten liability upon the complainant,” the commission said on October 1.According to the complaint, Kumar received transaction alerts on June 4, 2019, showing withdrawals of Rs 4,999 at 1.06 pm, another Rs 4,999 at 1.07 pm, Rs 10,000 at 1.08 pm and another Rs 10,000 at 1.09 pm.Bank alerted, but withdrawals continuedThe man approached two bank officials and showed them the transaction messages. According to his complaint, two further unauthorised withdrawals of Rs 4,999 each took place at 1.10 pm and 1.11 pm while the officials tried to block his account. Another Rs 3,500 and Rs 5,000 were also withdrawn that day.The commission recorded that Rs 72,495 was withdrawn through 11 UPI transactions using the Paytm application on June 4 and 5, 2019. Kumar approached the bank and police on June 4, 2019, and the police recorded a daily diary report. He also pursued his grievance with the bank’s offices in Chandigarh, Mumbai and Bengaluru.The district commission partly allowed his complaint on June 1, 2023, directing the bank to refund Rs 72,495 with interest at the prevailing rate from June 4, 2019, until realisation, along with compensation and litigation costs of Rs 5,000. Kumar had sought 18 per cent annual interest, Rs 50,000 in compensation and Rs 5,000 towards litigation expenses.Story continues below this adNo customer negligence: CommissionChallenging the order, the bank argued that the transactions had been authenticated using Kumar’s UPI PIN or MPIN. It said the MPIN had last been generated on April 9, 2019, and had not been reset, suggesting that his credentials must have been compromised or shared.The bank denied deficiency in service and argued that another private bank, identified as the payment service provider, and the officials concerned had not been made parties to the complaint.The state commission found that MPIN authentication alone did not establish customer negligence. It noted that the bank’s investigation report accused Kumar of “hiding actual facts” but did not specify what those facts were.The commission said the bank had to produce convincing evidence that Kumar authorised the transactions or that negligence on his part led to his MPIN being compromised. It found no such evidence on record.Story continues below this adIt relied on the Reserve Bank of India’s (RBI) July 6, 2017, circular on customers’ liability for unauthorised electronic banking transactions.The circular provides for zero customer liability in specified circumstances, including third-party breaches where neither the bank nor the customer is at fault and the customer notifies the bank within three working days of receiving its communication about the unauthorised transaction.The commission found that Kumar had reported the incident within the prescribed period and that the bank had failed to establish negligence on his part. It therefore held the bank liable under the provision dealing with third-party breaches reported within three working days.TakeawayIf you spot unauthorised UPI withdrawals, immediately notify your bank, report the transactions in writing and preserve SMS alerts, bank statements and complaint acknowledgements. The Punjab State Consumer Disputes Redressal Commission held that MPIN authentication alone does not prove that a customer shared their credentials or was negligent.Story continues below this adConsumers facing similar grievances may contact the consumer helpline in their respective states (Punjab: 1800-425-1082) or dial the National Consumer Helpline at 1915 for assistance.Don’t miss out on these stories:Rs 3 lakh debited ‘without authorisation’, Punjab woman wins bank refund, Rs 20,000Airline ‘fails to clarify’ Covid travel curbs, man who missed UK flight wins Rs 50,000‘Asked to leave’ Kasauli villa 3 hours after check-in, 4 women win Rs 1.4 lakh payout