Zero Liability For Customers If Unauthorized Transactions Occur Without Their Fault: NCDRC Holds Union Bank Of India Liable For Deficiency In Service

The National Consumer Disputes Redressal Commission, presided by AVM J. Rajendra held Union Bank of India liable for deficiency in service owing to occurrence of unauthorized transactions. Contentions of the Bank The bank disputed the registered mobile number for the account and argued that the OTPs for the disputed transactions were sent to the complainant's registered number. Observations by the National Commission The National Commission observed that the case centered on the bank's liability for unauthorized online transactions. The commission noted the RBI guidelines mandate zero liability for customers if unauthorized transactions occur without their fault and are reported within three days.