Wrong parcel, Rs 99,000 UPI fraud: Chandigarh man wins Rs 1.5 lakh from SBI

A wrong parcel in July 2021 was followed by five unauthorised UPI withdrawals totalling Rs 99,940 from a Chandigarh man’s account. Despite refusing to share his PIN and alerting the State Bank of India (SBI) within two hours, he fought for over five years to recover his money. On October 21, 2026, the state consumer commission upheld the refund order, directing SBI to return Rs 99,940 with nine per cent annual interest from July 21, 2021, and pay Rs 10,000 towards compensation and litigation expenses. The estimated payout exceeds Rs 1.5 lakh.

The Chandigarh State Consumer Disputes Redressal Commission was hearing State Bank of India’s appeal challenging a district consumer commission order directing it to refund Rs 99,940 withdrawn through five unauthorised UPI transactions, with nine per cent annual interest and Rs 10,000 towards compensation and litigation expenses.

“In the absence of sufficient evidence establishing the Complainant’s liability, the bank cannot avoid its
responsibility merely on the basis of an allegation that the UPI PIN was either shared or not kept
secure…The burden of proving customer liability in case of unauthorised electronic banking transaction shall lie on the bank,” the commission said on October 21.

According to the customer, a delivery agent came on July 20, 2021, to collect a wrongly delivered parcel and asked for bank details to process a refund. He refused to share his PIN. The next afternoon, five transactions drained nearly Rs 1 lakh.

Five transactions drain Rs 99,940

On July 21, 2021, at around 2.50 pm, he received alerts about withdrawals of Rs 25,060, Rs 25,060, Rs 25,060, Rs 24,560 and Rs 200. He denied authorising the transactions or sharing his UPI PIN or OTP. He said he blocked his account and mobile number, informed SBI within two hours and complained to the Chandigarh Police/Cyber Cell.

He complained to SBI in writing on July 22, 2021. The bank reportedly promised a refund within 15 days of head office approval, but repeated visits and a February 9, 2022, reminder brought no relief. SBI admitted that Rs 99,940 had been debited through five UPI transactions but argued that such payments required a customer’s self-generated six-digit PIN, not an OTP.

The bank contended that the customer had either conducted the transactions himself, shared his PIN or failed to keep it confidential. It denied deficiency in service. The RBI circular provides zero liability in specified cases, including certain third-party breaches reported within three working days of the bank’s communication. It places the burden of proving customer liability on the bank.

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The district commission ordered SBI to refund Rs 99,940 with nine per cent annual interest from July 21, 2021, plus Rs 10,000 towards harassment, mental agony and litigation expenses. SBI appealed on May 25. As delivery of the free copy sent in December 2025 was unproved, the commission reckoned limitation from the paid copy received on April 15 and treated the appeal as timely.

It dismissed the appeal on October 21, finding no ground to interfere. SBI had deposited Rs 1,54,200 during the appeal. The commission ordered its transfer to the district commission for disbursement under the original order. The final interest was not calculated; the estimated payout exceeds Rs 1.5 lakh, but the order does not quantify it.

Takeaway

Never share your UPI PIN, OTP or banking credentials with anyone claiming to process a refund. If you notice an unauthorised transaction, immediately inform your bank, block the affected payment facility and report the incident to the cybercrime authorities.

For consumer-related grievances, individuals may contact the consumer helpline in their respective states and union territories (Chandigarh helpline:0172-270-0183) or call the National Consumer Helpline at 1915 for assistance.

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