ICICI Bank Ordered to Refund Rs 5.18 Lakh in Online Scam

The Nagpur District Consumer Disputes Redressal Commission recently mandated ICICI Bank to refund a customer over Rs 5.18 lakh. This directive stems from a FedEx parcel scam where the woman lost nearly Rs 6.93 lakh, highlighting banks’ accountability in online fraud, even with customer-authorized transactions.

Commission Finds Bank Negligent in FedEx Scam

The ruling specifically cited the bank’s failure to monitor suspicious transactions and its delayed response after the fraud was reported. The customer was coerced into transferring funds to scammers under threats of police action concerning a fake FedEx parcel.

• Amount Lost: Rs 6.93 lakh
• Amount to be Refunded by ICICI Bank: Rs 5.18 lakh

ICICI Bank contended that the transactions were authenticated by One-Time Passwords (OTPs), implying customer authorization. However, the commission found the bank liable for a deficiency in service and negligence, referencing the Reserve Bank of India’s (RBI) KYC Directions.

Regulatory Mandate for Continuous Monitoring

These RBI guidelines explicitly require banks to continuously monitor customer accounts for unusual activity. The commission’s decision underscores that banks hold a regulatory responsibility to detect and react to suspicious financial movements.

This applies even when customers appear to authenticate such transactions themselves. The complainant received not only the refund but also interest and compensation for mental agony and litigation costs, reinforcing the bank’s broader liability.