Ombudsman directs PNB to compensate money lost in online fraud

Additional check-ins needed to stop phishing in internet-banking

PTI | March 28, 2011



Taking cognisance of the misuse of technology in committing fraud, Punjab National Bank has been directed by the Ombudsman to return over Rs seven lakh with interest to a victim.

In its recent directive, the Banking Ombudsman has asked the nationalised bank to put in place strict measures to check such illegal activities.

The curious case of phishing involves a senior manager with Dabur India Ltd, Sahibabad, who lost about Rs eight lakh in the fraud.

Early last year, S P Yatri got an SMS from ICICI bank saying his equated monthly installment through Electronic Clearing System for February 2010 had bounced. Surprised over the text message, Yatri rushed to a nearby ATM to find that he had a balance of only Rs 526.

He then contacted the bank's call centre only to be told that all his money had been fraudulently transferred to 13 different account holders of PNB in different states like Bihar, Maharashtra, West Bengal, Karnataka and Uttar Pradesh.

Realising that he had become a victim of online fraud, Yatri went to Preet Vihar Police Station and lodged an FIR on February 16, 2010 in this regard.

PTI had in September last year reported the incident, which had prompted the authorities to act on it.

"I had written to Union Home Ministry. Besides, I met senior police officials also... I approached the Banking Ombudsman. After a year of my complaint, they have now passed an order," Yatri said.

"Punjab National Bank is directed to immediately refund an amount of Rs 7,02,291 to the complainant against an indemnity bond. The bank is also directed to pay interest at the applicable F.D. (Fixed Deposit) rates to the complainant from the date of withdrawal till the date of actual credit," the order said.

"The bank is also directed to provide-additional checks for changing of transaction password, mobile numbers etc. for internet banking to prevent phishing and also to prevent changes being made without proper verification/mandate," it said.

Banking Ombudsman act as a quasi judicial (to have powers of a court) authority for the Government of India to look into complaints relating to certain services rendered by the banks.
 

Comments

 

Other News

How the mind can help the body heal itself

Why do some people recover from illness against all odds? Can our beliefs, emotions and consciousness influence the body’s ability to heal? Drawing on over three decades of experience in medicine, research and medical innovation, internationally trained ophthalmologist and author Dr Dinesh Verma ex

1,364 anti-cancer formulations to cost less from today

The National Pharmaceutical Pricing Authority (NPPA), under the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, has capped trade margins on the Maximum Retail Price (MRP) of 137 anti-cancer drugs. This was based on the recommendations of an Expert Committee constitute

Who checks the books?

I read about the news about the Coimbatore library over coffee this morning. On the face of it, the headline was about a political ‘war’ between the DMK and TVK. But what stayed with me was something much more important than the blame game behind what had transpired. A writer walking through

Development paradox: Falling poverty miracle and an inequality problem

India’s reduction in poverty over the past decade is a development achievement of considerable significance. The World Bank’s April 2026 ‘India Development Update’ estimates that the share of Indians living below the international extreme-poverty line of $3.00 per person per day i

In Arunachal, a river we call mother

In Arunachal Pradesh, the Siang is not just a river. For many of us, especially the Adi people, it is part of our family. Our grandparents fished in it. Children learned to swim in it. Our farms drink from it. When someone says a huge dam will be built on it, we do not hear the word "project".

A new retelling of the Mahabharata delves into key moments

In a time when every decision carries consequences and questions of ambition, power, loyalty, identity and moral choice continue to shape our lives, Dr. Arun Krishnan’s new book, ‘Mahakshana’ (Penguin India) offers a strikingly relevant retelling of the Mahabharata.  

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter