Union Bank Fined After Customer Loses Rs 7 Lakh From Savings Account

Union Bank faces a consumer commission order.

A customer reported an unauthorised account deduction.

Shivamogga commission awarded compensation and interest.

A consumer dispute in Shivamogga has resulted in an important order against Union Bank of India after Rs 7 lakh was deducted from a customers savings account without her knowledge.

The case involved Julie SP, a resident of Nandini Layout in Shivamogga, who maintained a savings account at the banks Vinobanagar branch. On May 3, 2024, she received messages showing three transactions that together resulted in Rs 7 lakh being taken from her account.

Julie told the commission that she had not carried out the transactions and had not shared any OTP. She approached the bank soon after receiving the alerts and requested that the money be restored.

According to the complaint, the issue remained unresolved despite her efforts. After a legal notice was issued on October 25, 2024, the bank deposited Rs 2,33,333 into her account on November 30. The remaining Rs 4,66,667 was not returned, leading her to approach the Shivamogga District Consumer Disputes Redressal Commission.

After examining the documents, affidavit and arguments presented by both sides, the commission concluded that there had been a deficiency in service on the banks part.

The commission directed the bank to pay the outstanding Rs 4,66,667 along with annual interest of 8 percent calculated from October 25, 2024. The payment has to be made within 45 days.

The order also includes Rs 25,000 as compensation for the mental distress suffered by the customer and Rs 10,000 towards litigation expenses.

The commission further warned that if the amount is not paid within the specified 45 day period, interest at 10 percent annually will apply to the entire payable amount until the dues are cleared.

The order was issued by a bench headed by commission president T Shivanna, with member BD Yogananda Bhandya.