MP consumer commission holds customer, not PNB, liable for Rs 1,92,990 UPI loss
The Madhya Pradesh State Consumer Commission dismissed a PNB customer's appeal, holding that he lost Rs 1,92,990 through UPI because he clicked unknown links and shared his details.
Key points
- The Madhya Pradesh State Consumer Disputes Redressal Commission dismissed a Punjab National Bank customer's appeal on 30 October 2026.
- The commission found five UPI transfers totalling Rs 1,92,990 followed the customer twice clicking a link from an unknown person.
- Under the RBI circular, a customer whose negligence causes a loss bears it until the transaction is reported, the commission held.
Photo: MB-one / Wikimedia Commons, CC BY-SA 4.0 (cropped). Representational image.
The Madhya Pradesh State Consumer Disputes Redressal Commission on 30 October 2026 dismissed a Punjab National Bank customer's appeal over Rs 1,92,990 taken from his savings account through UPI. It held that the customer's own negligence caused the loss, so the bank was not liable under the RBI's rules on unauthorised transactions.
What Happened
According to the order, five UPI transfers totalling Rs 1,92,990 left the customer's account on 31 March 2023. He said he had not shared his UPI PIN or made them, and he learnt of them on 2 April 2023, when he informed the bank, called helpline 1930 and complained to the cyber crime police in Bhopal. He argued that UPI transfers above Rs 1 lakh in 24 hours should not have gone through and that he had zero liability because he reported within three working days.
The District Consumer Disputes Redressal Commission, Bhopal, dismissed his complaint on 13 August 2024. On appeal, the State Commission found from his own complaint to the police that he had clicked a link sent on WhatsApp by an unknown person twice, paid Rs 5 each time and shared his details. The bank had sent an SMS alert after every transaction, which he did not see until 2 April 2023, the order said.
The commission relied on clause 7 of the RBI's circular, which says that where a loss is due to the customer's negligence, such as sharing payment credentials, the customer bears the entire loss until the transaction is reported, and the bank bears any loss after that. It distinguished a Supreme Court ruling that a bank is fully liable where no negligence by the account holder is established. It also said, relying on another Supreme Court ruling, that disputed questions of fraud or cheating are not suited to consumer commissions.
What It Means
The RBI's zero-liability protection for prompt reporting does not cover losses a commission finds were caused by the customer's own negligence. Do not click unknown links or share payment details, and read bank SMS alerts at once. Report cyber fraud on helpline 1930 or at https://cybercrime.gov.in and to your bank immediately; complaints against a bank can go to the RBI at https://cms.rbi.org.in. The order may be appealed.
Source: Consumer commission order
Sources & Citations
- Consumer commission order — Consumer commission