Punjab consumer commission says SBI customer bears Rs 7.25 lakh loss in remote-app scam

The Punjab State Consumer Disputes Redressal Commission on 2 November 2026 set aside a District Commission order that had directed State Bank of India to reverse Rs 7.25 lakh lost by a Jalandhar customer in unauthorised UPI debits. The commission held that the customer bore the loss because he had followed a caller's instructions to install a remote-access app and then reinstalled it after the first debits.

What Happened

According to the order, the customer received an SMS on 15 June 2021 saying his mobile number would be blocked. A caller then told him to download an app called "BSNL Quick Support" and make a Rs 10 recharge through the SBI YONO app to "upgrade" his SIM to 5G. Debits of Rs 5,97,000 followed. The caller assured him it was a system error, and after he reinstalled the app on the caller's advice, five more debits totalling Rs 1,25,000 followed, as the order records. The customer said he never shared an OTP.

The Banking Ombudsman, on 16 January 2022, found no deficiency in service by the bank; one of the banks that received the money paid Rs 50,000 in compensation. The District Commission, Jalandhar, on 7 March 2025 still ordered SBI to reverse Rs 7.25 lakh and pay Rs 30,000 in compensation and costs, relying on RBI's 6 July 2017 circular on customer liability.

The State Commission held that the customer was negligent: he did not verify the caller, did not use the blocking number given in the bank's SMS after the first debit, and reinstalled the app. It held that clause 7(i) of the RBI circular applies, under which a customer whose negligence causes the loss bears it until the transaction is reported to the bank. It found the bank acted promptly once told, allowed SBI's appeal and dismissed the complaint.

What It Means

For bank customers, the order shows that "zero liability" under RBI's rules may not apply when a loss follows a customer's own action, such as installing a screen-sharing or remote-support app at a stranger's request. Losses after the bank is told remain the bank's liability under the circular.

Never install an app or make a payment on an unknown caller's instructions. Report a suspicious debit to your bank at once using the blocking number in its SMS, report cyber fraud at https://cybercrime.gov.in or helpline 1930, and take unresolved bank complaints to https://cms.rbi.org.in.

Source: Consumer commission order