If you are stuck in such a situation, here is what to do.

Mr. Sameer Verma, a resident of Nagpur, recently faced a shocking situation involving a prominent financial institution, Bharat Commercial Bank. He applied for their “Premier Rewards” credit card online and completed the Video Know Your Customer (VKYC) process. The bank then sent him a pre-filled application form for his e-signature. However, Mr. Verma noticed several discrepancies in the form, including incorrect salary details and pre-selected options for marketing communications and auto-debit, which he had not consented to. He promptly emailed the bank’s support team to highlight these issues and requested a corrected form, deciding to wait before proceeding.

To his surprise, a few days later, he received a notification that his credit card had been approved and dispatched. Assuming the bank had rectified the errors and waived the need for a final signature due to the Aadhaar-based VKYC, he awaited the card’s arrival. When the card was dispatched, the bank, as per its policy, sent a copy of the final application form. Mr. Verma was appalled to discover that it was a physical paper form, and his signature had been crudely forged in all the required sections. Realizing the gravity of the situation, he immediately escalated the matter to the bank’s senior grievance redressal officer. After two months of persistent follow-ups, during which the bank initially offered vague excuses, they finally admitted to the forgery and requested him to drop the complaint, citing that an employee might lose their job. Mr. Verma stood his ground, compelling the bank to formally acknowledge their misconduct.

Advice in such cases

Encountering such a situation can be distressing. Forgery is a serious criminal offense, and when committed by a trusted institution like a bank, it constitutes a severe breach of trust and a deficiency in service.

• Preserve all evidence meticulously. This includes emails, SMS notifications, the application copy with the forged signature, and any written communication from the bank.
• Do not agree to any verbal settlements. Insist on all communication, especially admissions of guilt or settlement offers, to be in writing.
• Do not be swayed by emotional appeals from the bank to drop the complaint. The act of forgery has serious legal implications that go beyond internal disciplinary action.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Applicable Sections of Law

The actions of the bank’s employees fall under the purview of several Indian laws, primarily the Bharatiya Nyaya Sanhita (BNS), 2023.

• Section 106 of the BNS, 2023 (Forgery): This section defines forgery as making any false document or electronic record with the intent to cause damage or injury to the public or any person, or to support any claim or title, or to cause any person to part with property, or to enter into any express or implied contract, or with intent to commit fraud.
• Section 108 of the BNS, 2023 (Forgery for purpose of cheating): This section specifically deals with forgery committed with the intent to cheat, which is directly applicable here. The punishment can extend to imprisonment for up to seven years and a fine.
• Section 318 of the BNS, 2023 (Cheating): By fraudulently inducing the customer into a credit card agreement through a forged document, the bank has committed cheating.
• Consumer Protection Act, 2019: This act of forgery and the subsequent issuance of a card based on it amounts to a “deficiency in service” and “unfair trade practice,” for which you can seek compensation.
• Information Technology Act, 2000: Since the process began electronically and involved an attempt at an e-signature, provisions of this act regarding the authenticity and integrity of electronic records can also be invoked.

If you are the complainant

If you represent the bank or are the employee involved, the situation is grave. Your primary focus should be on mitigating the legal and reputational damage.

• Do not attempt to cover up the mistake. Cooperate fully with internal and external investigations.
• Proactively reach out to the aggrieved customer to offer a formal apology and a fair resolution. This may include cancelling the card, confirming zero liability in writing, and offering reasonable compensation for the harassment caused.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.
• Understand that admitting fault does not absolve you of legal liability, but it can be a mitigating factor during legal proceedings.

If you are the victim

As the customer whose signature was forged, you have multiple legal avenues to pursue justice and seek compensation.

• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.
• File a Police Complaint: Lodge a First Information Report (FIR) at your local police station for forgery and cheating under the relevant sections of the BNS. Provide them with all the evidence you have collected.
• Complaint to the Banking Ombudsman: File a formal complaint with the RBI’s Banking Ombudsman for deficiency in service. This is a dedicated channel for resolving disputes with banks.
• File a Consumer Complaint: Approach the District Consumer Disputes Redressal Commission to claim compensation for the mental agony, harassment, and potential financial risk caused by the bank’s actions.
• Notify the Bank Formally: Send a written notice to the bank (preferably through your lawyer) demanding immediate cancellation of the card and a written confirmation that you hold no liability for any transaction made on it.

How the police behave in such cases

Initially, the police might be reluctant to register an FIR against a large bank, often trying to dismiss it as a “civil matter” or a “service dispute.” However, forgery is a cognizable criminal offense. With legal assistance and persistent follow-up, you can ensure that an FIR is registered. The investigation will involve seizing the forged document, taking statements, and possibly involving handwriting experts. The process can be slow, but it is a crucial step for criminal prosecution.

FAQs people normally have

Can I get financial compensation for this?
Yes. You can claim compensation for mental harassment and deficiency in service by filing a case in the Consumer Court. The amount will depend on the court’s assessment of the severity of the bank’s misconduct and the distress caused to you.

Will the bank employee who forged the signature go to jail?
Forgery is a criminal offense punishable with imprisonment. If the police investigation gathers sufficient evidence and a chargesheet is filed, the employee can be prosecuted. A conviction could lead to imprisonment, a fine, or both.

What should I do with the credit card?
Do not activate or use the card. Formally request the bank in writing to cancel it immediately. Keep a copy of this communication. Ensure you receive a confirmation from the bank that the card has been cancelled and you bear zero liability.

What evidence is required?

The strength of your case depends on the quality of your evidence. Key pieces of evidence include:

• The copy of the application form sent by the bank showing the forged signature.
• All email correspondence where you pointed out discrepancies and did not give your consent.
• SMS and email alerts from the bank regarding the application, approval, and dispatch.
• A copy of your genuine signature from other official documents (like your PAN card or passport) for comparison.
• Any written communication from the bank where they have admitted to the wrongdoing.

How long will the investigation take?

The timeline for resolution can vary significantly depending on the legal path you choose.

• Banking Ombudsman: This process is relatively faster and can lead to a resolution within 30 to 90 days.
• Consumer Court: A case in the Consumer Commission can take anywhere from several months to a couple of years to reach a final decision.
• Criminal Case (Police FIR): The police investigation and subsequent court trial is the longest route and can take several years to conclude.

Advocate Sudhir Rao, Supreme Court of India