HDFC Bank Ordered to Refund ₹1.39 Lakh Card Fraud With 9% Interest: OTP Use Is Not Proof of Consent
Updated 24 September 2026 · By Amit Kumar Bansal
The Kakinada consumer commission has ordered HDFC Bank to refund a ₹1,39,901 credit card charge its customer never authorised, with 9% interest, plus ₹35,000 in compensation and costs. HDFC Bank argued the card details and OTP were used; the commission held that OTP authentication alone does not prove the customer approved the payment.
The Ruling at a Glance
| Detail | As reported |
|---|---|
| Bank | HDFC Bank |
| Forum | Kakinada consumer commission, order dated 22 August 2026 |
| What went wrong | ₹1,39,901 online charge on 18 February 2024, reported the same day; the bank refused to reverse it |
| Award | Full refund + 9% a year from 18 Feb 2024, ₹30,000 compensation, ₹5,000 costs; linked charges waived, any adverse CIBIL entry corrected |
| Rule enforced | RBI circular of 6 July 2017: the bank must prove the customer is liable |
What This Means for You
Speed won this case. Report an unauthorised charge to your card issuer within three working days and, under RBI rules, your liability is zero.
Complain the same day by phone and email, report it to cyber-crime on 1930 or cybercrime.gov.in, and keep every reference number.
If the bank refuses or stays silent for 30 days, complain free at cms.rbi.org.in; a consumer commission is the next step. HDFC Bank was given 45 days to comply.
Case details as reported by The Economic Times on 15 September 2026; rules as stated in RBI circular RBI/2017-18/15 dated 6 July 2017.
