A recent decision by the Uttarakhand State Consumer Disputes Redressal Commission has brought relief to Punjab National Bank and Google Pay, with the panel ruling that banks and digital payment platforms cannot be held responsible for losses caused by customer negligence in online transactions.
The case was filed by Haridwar resident Sachin Kumar, who claimed that in November 2020 he tried to transfer ₹25,000 through Google Pay. While the transaction was shown as failed, the amount was debited from his account. He later received suspicious messages and within the next 2 days, multiple transactions were carried out, leading to a total debit of ₹1,06,500. Kumar approached the bank and then the district consumer commission, which initially ordered PNB to refund the amount. The bank challenged this decision before the State Commission.
During the appeal, the State Commission examined transaction records and found that all disputed payments originated from the complainant’s own mobile phone and were completed using valid UPI PIN authentication. The panel observed that platforms such as Google Pay do not allow transactions without correct credentials. It stressed that protecting mobile devices, OTPs, passwords and UPI PINs is the sole responsibility of the customer.
Setting aside the district forum’s order, the Commission ruled that when transactions are executed from a registered device using valid UPI PINs, they must be treated as authorised by the account holder unless a system failure or security breach is proven. It noted that the lower forum failed to properly assess technical evidence and transaction logs. The ruling is expected to act as a precedent in similar digital fraud cases and reinforces the need for users to remain cautious. Authorities have again urged citizens not to share banking details and to report suspicious activity immediately to banks or the cyber helpline 1930.
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