Bank liable for unauthorised online transaction

The National Commission observed that there was a security breach of the bank's net banking system

Leader Valves had three accounts with Punjab National Bank. Of these, only one was authorised for e-banking. The password was changed every month for security.

On January 25, 2010, the company found that Rs 40 lakh had been transferred from its account which did not have e-banking facility. This amount was credited to a thirty party's account with the same bank. The company immediately brought this to the bank's notice, so it was recovered.

Subsequently, an online transfer of Rs 26,48,500 was also made from another account which too did not have e-banking facility. On taking up the issue with the