One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.

Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.

Mr. X, a small-scale business owner, regularly visited ABC Bank for his business transactions. During one of his visits, bank officials insisted he use only their proprietary payment software instead of popular UPI applications like X-Pay or Y-Pay. The bank explicitly stated they would not provide assistance or take responsibility for any issues arising from transactions made through third-party payment applications. This created significant inconvenience for Mr. X’s business operations, as his customers preferred using standard UPI apps. The bank’s refusal to support widely-accepted payment methods raised questions about their service obligations and consumer rights. Mr. X approached our legal team to understand whether banks can legally shirk their responsibilities regarding payment disputes and what remedies were available.

Advice in Such Cases

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 to 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.

Document all communication with the bank regarding their payment policy stance. File a complaint with the Banking Ombudsman if the bank refuses reasonable assistance. Contact RBI’s customer grievance mechanism for policy violations. Consider approaching consumer forums if banking services are being unreasonably restricted.

Applicable Sections of Law

Under the Bharatiya Nyaya Sanhita (BNS), Section 318 addresses criminal breach of trust by public servants or banking officials. Section 419 covers cheating and dishonestly inducing delivery of property. The Bharatiya Nagarik Suraksha Sanhita (BNSS) Section 173 governs investigation procedures for financial disputes. Consumer Protection Act 2019 provides additional remedies for deficiency in banking services. RBI guidelines mandate banks to provide reasonable customer support regardless of payment method used.

If You Are the Complainant

• Document the bank’s refusal to assist with UPI-related issues in writing
• File a formal complaint with the bank’s grievance redressal officer
• Approach Banking Ombudsman within 30 days if bank doesn’t respond
• Submit complaint to RBI’s online portal with supporting evidence
• Consider consumer forum action for deficiency in banking services

If You Are the Victim

• Immediately report any payment disputes to both the bank and UPI service provider
• Maintain detailed records of all transactions and communication attempts
• File written complaints with timestamps and reference numbers
• Escalate to senior management if branch-level officers are unresponsive
• Seek legal advice if the bank’s policies violate RBI guidelines or consumer rights

How the Police Behave in Such Cases

Police typically treat banking disputes as civil matters unless fraud or cheating is involved. They may direct victims to approach banking authorities first. If criminal elements like intentional fraud are established, police will register FIR under relevant BNS sections. Cybercrime cells handle digital payment frauds more effectively than regular police stations.

FAQs People Normally Have

Can banks refuse to help with UPI disputes? No, RBI guidelines require banks to assist customers with all payment-related issues within reasonable limits.

Is forcing proprietary payment apps legal? Banks cannot restrict customers from using RBI-approved payment systems without valid technical reasons.

Where to complain about bank’s refusal? Banking Ombudsman, RBI grievance portal, and consumer forums are primary channels.

What’s the time limit for complaints? Banking Ombudsman complaints must be filed within one year of the incident.

What Evidence Is Required?

• Written bank communication refusing UPI support
• Account statements showing transaction patterns
• Email threads and complaint acknowledgments
• Screenshots of digital communications with bank officials
• Witness statements from other affected customers
• RBI guidelines documents highlighting bank obligations
• Business impact documentation due to payment restrictions

How Long Will the Investigation Take?

Banking Ombudsman typically resolves complaints within 30 days. RBI grievance mechanism takes 30-45 days for initial response. Consumer forum proceedings may extend 6-12 months depending on complexity. Internal bank escalation should be resolved within 15-30 days as per RBI timelines.

Advocate Sudhir Rao, Supreme Court of India