NationalSaturday, 3 October 2026·The Hindu - National
Canara Bank ordered to pay ₹5.04 lakh in unauthorised transaction case; RBI customer-protection rules cited
A Kalaburagi consumer commission ordered Canara Bank to pay ₹5.04 lakh and cited RBI guidelines on unauthorised electronic banking transactions.
Key highlights
Direct fact
On September 29, 2026, the District Consumer Disputes Redressal Commission in Kalaburagi ordered Canara Bank’s Station Bazar branch to pay ₹5.04 lakh in a case involving three unauthorised transactions from March 17, 2025.
Key specifics
- The disputed deductions were ₹2 lakh, ₹2 lakh and ₹84,000, totalling ₹4.84 lakh.
- The complainant, Siddayya Nandikol of Hirapur, reported the transactions to the bank and Cyber Police on the same day.
- The Commission cited RBI guidelines on customer protection in unauthorised electronic banking transactions and held the customer’s liability as zero.
- It awarded ₹15,000 as compensation and ₹5,000 as litigation costs, apart from interest at 6% per annum.
- The order said the bank must pay within 45 days, failing which recovery would carry 8% interest from September 20, 2025.
Exam lens
Question type: Banking regulation and consumer protection, RBI guidelines, OTP, liability zero, 6% interest, 45 days. TNPSC may ask who bears the burden of proving OTP sharing in unauthorised electronic transactions.