Bank Customers Have No Way Of Contacting Officials Who Send Emails, Accountability Required: Delhi High Court

The Delhi High Court has expressed concern over the computer generated e-mails sent by Citibank to its customers without the mention of contact details of officials under whose instructions they were generated and sent.

Observing that there ought to be some accountability of bank officials, Justice Prathiba M Singh sought response of the bank as to whether names of its officials along with their e-mail IDs can be inserted in the emails sent to customers.

The court also sought the bank's response about the process of verification it undertakes before registered mobile numbers of the customers are allowed to be changed.

“Inasmuch as if a registered mobile number is changed, it could also lead to severe misuse of the credit card or other net banking services,” it said.

The court also sought details about the helplines in Citibank and the manner in which they are managed and also on the manner of appointment of collection agents for collecting outstanding charges or amounts from customers.

It also granted four weeks’ time to RBI for filing a response on the aforementioned aspects.

Justice Singh was hearing a contempt plea by a Citibank customer, Sarwar Raza, alleging violation of the order dated December 5, 2022 passed in his plea filed in 2022.

The customer had moved court seeking refund of Rs.76,777 which was debited from his credit card for a transaction that was not carried out by him. The single judge, while issuing notice in the plea, had directed the bank to not take any coercive steps against him in the meantime.

In the contempt plea, the petitioner submitted that despite the court order, he received a demand notice on January 2 from the bank reflecting total outstanding amount of Rs.1,00,972 which included late payment fee and the interest charges. An email was also received on January 13 which stated that the petitioner’s credit card would be closed soon.

The counsel appearing for Citibank submitted that the bank does not have any intention to violate the judicial orders and was willing to tender an unconditional apology. It was also submitted that the bank is willing to reverse all the charges imposed on the petitioner.

The court referred to its previous order dated February 10 where concerns were expressed regarding the difficulty faced by customers to contact the concerned bank official since none of the communications contained details of any individual who could be held responsible.

“These issues plague banking customers across the industry. Hence, this Court is of the opinion that there ought to be some accountability when e- mails are sent in this manner,” the court said.

The court directed that a Senior Official handling the matter shall join the proceedings on April 11, the next date of hearing physically, adding that other officials may also join virtually.

Title: SARWAR RAZA v. OMBUDSMAN RBI & ANR.

Citation: 2023 LiveLaw (Del) 167

Click Here To Read Order