Chennai Banks Forced to pay
Nov 18: After the Chennai Police unearthed a major credit card scam, it is reported that Banks have started reimbursing the losses to the customers on the basis of FIRs lodged. Canara Bank and ICICI Banks are reported to have repaid Rs 8 lakhs against 15 complaints so far. A total of 247 complaints have been filed with the Police in this connection. The total loss is estimated to be Rs 1.5 crores. Of the 247 instances, 92 cases are from Canara Bank. The credit for this change of heart by Banks may perhaps belong to the Chennai police for persuading Banks to accept liability since it is a common knowledge that Banks often resist the customer's demands in such cases. Report in Hindu
Bank of India and Police in Bangalore needs to take note of this development with reference to the complaint filed by Mr S Nagaraja regarding fraudulent withdrawal through ATMs. It must be reiterated that in this case the Banking Ombudsman in Bangalore Mr S Palanisamy failed to provide justice to the victim and Deputy Governor of RBI also failed to intervene. In this case also Canara Bank was involved indirectly since the money was withdrawn through Canara Bank ATM which did not have CCTV installed. Bank of India took the unfair stand to which Mr Palanisamy agreed that since the ATM has recorded that "Transaction was successful", it is the responsibility of the customer to provide evidence that he did not draw the money himself. The lack of CCTV facility was conveniently used by the banks to avoid their liability and the banking Ombudsman did not find any fault with the Bank.
Naavi.org is still looking for clarification from Dr Chakravarthy, Deputy Governor RBI in this regard.
Earlier articles: Innocent Bank Customer Suffers of ATM Card Cloning Fraud : Banking Ombudsman Scheme Set to Fail (Part 1) : The BO order : Bank of India Vs ATM Customers
posted by Naavi @ 8:40 PM
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