Fraudulent Withdrawals in SBI ATM after PIN Change Shows ‘Systemic Lapses’, NCDRC Orders Full Refund, ₹30,000 Compensation

In a significant ruling underscoring the responsibilities of banks in securing electronic transactions, the national consumer disputes redressal commission (NCDRC) has dismissed a revision petition filed by the State Bank of India (SBI) and upheld findings that the bank failed to prevent fraudulent withdrawals at an automated teller machine (ATM) from a customer’s account despite a prompt change of personal identification number (PIN). The order, pronounced on 17 November 2025, requires SBI to refund ₹35,458 with an interest of 9%pa (per annum), from 19 January 2015 till the date of realisation and pay ₹30,000 as costs to the complainants. In the order, the NCDRC bench of air vice-marshal (AVM) J Rajendra (retd) and justice Anoop Kumar Mendiratta says, "Admittedly, no explanation has