PNB ATM fraud: Victim wins case against PNB after 10 years. What to do when you lose money in a teller machine?

An RPF (Railway Police Force) constable recently won an ATM fraud case against Punjab National Bank (PNB) after battling it for 10 years in the district consumer commission in Delhi, reported Economic Times.

The matter relates to 2013 when the victim lost ₹80,000 in eight transactions between June 28-30. Incidentally, ₹70,000 was already reversed by the bank but ₹10,000 was still due.

The district consumer court has ordered the bank to give ₹10,000 to the victim plus 9 percent per annum from June 30, 2013. The state lender has also been ordered to pay ₹25,000 as compensation.

It is not unusual to get the money deduced while trying to withdraw money in an ATM without receiving the sum.

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But usually, the money gets reversed barring some exceptions. This above-mentioned case was an exception.

What would you do if you happen to be one of such exceptions?

Customer’s liability

It is vital to note that if you are the victim of any such fraud, you should report the same within three working days. In such a case, there would be zero liability.

But when the fraud is reported within 4 to 7 working days, the liability would be the transaction value or the amount mentioned in the below table whichever is lower.

And after seven working days, the customer's liability would be the bank's Board approved policy.

Time taken to report the fraudulent transaction

(Source: RBI)

The liability of customer can range between ₹5,000 to ₹25,000 based on the type of account. For instance, in a basic savings bank deposit account, the maximum liability is ₹5,000, as shown in the table below. 

It is vital to note that when fraud or negligence or deficiency lies on the bank, customer is entitled to zero liability whether or not the transaction is reported by the customer.

And when the loss happened because of the customer's negligence, the customer will bear the entire loss until he reports the unauthorised transaction to the bank but any loss occurring after the reporting will be borne by the bank.