Sambhal, Uttar Pradesh. Jio Payments Bank has faced action after allegedly blocking a customer’s entire bank account over a suspicious transfer of ₹4,000 linked to a cyber fraud case. The District Consumer Commission objected to the bank’s action and ordered it to unblock the customer’s online account and pay ₹5,000 as compensation.
The District Consumer Commission reportedly made it clear that if there is a complaint regarding a suspicious transaction in an account, the bank should consider restricting only the disputed amount. Blocking the entire account may not be appropriate, especially when other legitimate funds are available in the account.
According to Paras Varshney, an advocate dealing with cybercrime and medical negligence cases, Jeetu, a resident of Mohalla Bhale Bhaj Khan in the Saraitareen area of Sambhal, had opened an online account with Jio Payments Bank for his convenience. The account was linked to his mobile phone.
It was reported that the account contained approximately ₹50,000. During this period, the bank allegedly considered a transfer of ₹4,000 suspicious and placed a restriction on the customer’s entire account. As a result, the customer was unable to access or use the money available in his account.
The customer then approached the Consumer Commission against the action. After hearing the matter, the District Consumer Commission reportedly found the bank’s action to be inappropriate and issued directions providing relief to the customer.
The commission ordered the bank to unblock the consumer’s online account. It also directed the bank to pay ₹5,000 as compensation for the inconvenience and mental harassment allegedly suffered by the customer.
The decision is being seen as significant for banking consumers. The commission’s observations indicate that while banks should take necessary action when investigating cybercrime or suspicious transactions, a consumer’s legitimate funds and banking facilities should not be completely restricted without adequate grounds.
Following the commission’s order, the bank has been directed to restore the customer’s account and pay the prescribed compensation amount.
