HDFC Bank penalized for illegal fund transfer

By | April 2, 2010

HDFC Bank, a leading bank in the country that offers various banking services including Personal Loans has been penalized by the District Consumer Complaints Redressal Forum. The bank was held responsible for illegal fund transfer in an internet banking transaction.

As per the order dated 25th March, the Forum has asked the bank to refund its client the entire amount, which had been transferred from his bank account without his permission.

The Forum, led by M G Rahatgaokar, said that the Bank did not implement the guidelines laid down by Reserve Bank of India for net banking facility. The client had an account with HDFC’s Santacruz branch. He worked with Qatar National Bank, which sent Rs 4,60,000 to his account in October 2008. But in November, the complainant found out that his bank balance was nil.

He found out that the whole sum was transferred to the account of one Dinesh Shukla via net banking. The complainant said that Shukla was not on the list of “third party beneficiaries” for his online account. He filed a police complaint and managed to recover Rs 70,500 and also demanded the remaining sum from the bank since it was not his fault.

But bank declined to pay him the remaining sum, after which he approached the Consumer Forum, which declared the bank guilty. Moreover HDFC Bank was also asked to pay Rs. 35,000 towards mental stress and legal charges.

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