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

Mr. Arjun Kumar, a resident of Nagpur, maintained a savings account with Global Trust Bank, a prominent private sector bank. He discovered that the bank had, without his knowledge or explicit consent, activated a Demat and trading account in his name. Following this, two separate amounts of ₹1250 and ₹650 were debited from his savings account, purportedly as fees for this new, unsolicited service. The situation escalated when Mr. Kumar visited the bank’s branch at Civil Lines to complete the formalities for closing a personal loan. During this visit, a bank employee, Mr. Sameer Verma, allegedly behaved in a threatening manner, using coercive language and creating undue pressure on Mr. Kumar regarding the unauthorised account and his funds. This incident caused Mr. Kumar significant mental anguish and distress. He promptly lodged a complaint with the bank’s internal grievance redressal mechanism, but the bank has since refused to refund the deducted amounts or take accountability for the employee’s conduct. Mr. Kumar is now contemplating his next steps to seek justice and compensation for the financial loss and harassment he has endured.

Advice in such cases

• Document Everything: Keep a detailed record of all communications with the bank, including dates, times, names of officials you spoke with, and what was said. Preserve all bank statements, emails, and any written correspondence.
• Formal Written Complaint: If you haven’t already, send a formal complaint via registered post or email to the bank’s head office and nodal officer. Clearly state the facts, the unauthorised nature of the account, the harassment faced, and your demand for a refund and closure of the account.
• Escalate to the RBI Ombudsman: If the bank does not resolve your complaint to your satisfaction within 30 days, or if they reject your complaint, you have the right to escalate the matter to the RBI’s Banking Ombudsman. This is a dedicated and effective forum for resolving such disputes.
• File a Consumer Complaint: You can file a complaint with the District Consumer Disputes Redressal Commission for “deficiency in service” and “unfair trade practice” by the bank. You can claim a refund, compensation for mental harassment, and litigation costs.
• 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

This situation potentially involves violations of several Indian laws:

• Consumer Protection Act, 2019: Opening an account without consent constitutes a “deficiency in service” and an “unfair trade practice.”
• Information Technology Act, 2000: If your personal information was used without authorisation to open the account, it could fall under Section 66C (Identity Theft).
• Bharatiya Nyaya Sanhita (BNS), 2023: The act of opening an account to wrongfully gain financially could be interpreted as cheating under Section 318. The threatening behaviour by the bank employee could amount to criminal intimidation under Section 351 of the BNS.
• RBI Regulations: The Reserve Bank of India has strict guidelines on customer consent and KYC (Know Your Customer) norms. Opening an account without explicit, informed consent is a direct violation of these regulatory mandates.

If you are the complainant

• Gather all your evidence meticulously. This includes bank statements showing the unauthorised debits, copies of all complaints filed, and any digital or physical correspondence.
• Draft a clear timeline of events, from the opening of the unauthorised account to the instance of harassment and the bank’s response.
• Lodge a formal complaint on the National Cyber Crime Reporting Portal (cybercrime.gov.in) if you believe your digital identity and credentials were misused.
• Simultaneously, you can proceed with filing a complaint before the Banking Ombudsman and the Consumer Commission.
• 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.

If you are the victim

• Your primary goal is to seek redressal, which includes getting your money back, ensuring the unauthorised account is closed, and getting compensation for the harassment.
• Do not be intimidated by the bank’s refusal. Their initial response is often a tactic to discourage customers. Your persistence is key.
• Follow the escalation matrix diligently, starting from the bank’s internal mechanism to the RBI Ombudsman and consumer forums.
• Clearly articulate the mental stress and harassment caused, as this is a valid ground for seeking additional compensation in consumer courts.
• 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.

How the police behave in such cases

In cases like this, which are a mix of civil and criminal elements, the police response can vary. Initially, they might perceive it as a civil dispute and advise you to approach the Banking Ombudsman or a consumer court. However, if you clearly articulate the elements of cheating, fraud, and criminal intimidation, they are obligated to register a First Information Report (FIR) under the relevant sections of the Bharatiya Nyaya Sanhita (BNS). Once an FIR is registered, the police will investigate the matter, which may involve questioning the bank officials involved and seizing relevant documents and electronic records from the bank.

FAQs people normally have

• Can I ask for compensation for the stress and harassment? Yes, you can and should claim compensation for mental agony, harassment, and the time wasted. The Consumer Protection Act, 2019, specifically allows for such claims.
• Should I wait for 30 days before approaching the RBI Ombudsman? Yes, the procedure requires you to first give the bank 30 days to resolve your complaint. If they fail to do so or you are not satisfied with their response, you can then file a complaint with the Ombudsman.
• Is it better to file a consumer complaint or go to the Ombudsman? You can pursue both. The Ombudsman is a faster, cost-free process focused on banking regulations. The consumer court can award broader relief, including significant compensation for harassment and legal costs.
• What if the bank produces a document with my signature? If the signature is forged or was obtained deceptively without explaining the purpose, you can challenge its validity. The burden of proof lies with the bank to demonstrate that they obtained your informed consent.

What evidence is required?

• Bank account statements clearly showing the unauthorised debits.
• Copies of your savings account opening form to show a Demat account was not requested.
• All email and written correspondence with the bank regarding this issue.
• Reference numbers for all complaints lodged (with the bank, Ombudsman, or police).
• A personal affidavit detailing the incident of harassment, including the date, time, and name of the employee.
• Any call recordings or CCTV footage, if available and legally obtained.

How long will the investigation take?

The timeline can vary significantly based on the forum you choose. A resolution from the Banking Ombudsman can take a few weeks to a few months. A case in the consumer court can take anywhere from six months to a couple of years, depending on the complexity and the caseload of the commission. A police investigation under the BNS can also take several months to conclude before a final report (chargesheet) is filed in court.

Advocate Sudhir Rao, Supreme Court of India