HDFC Bank refunds Rs 2.9 Cr to woman in fraud case. Things to keep in mind

HDFC Bank reimbursed Rs 2.9 crore to Meenakshi Kapuria after Rs 3 crore fraud by her relationship manager. The Bombay HC urges RBI to strengthen banking fraud policies

HDFC Bank informed the Bombay High Court on Friday that it has credited Rs 2.9 crore to the account of Meenakshi Kapuria, a customer who had lost Rs 3 crore in a fraud by her relationship manager (RM).

 

Alay Razvi, managing partner, Accord Juris, explains the case

  The case pertains to a banking fraud involving Meenakshi Kapuria (customer at HDFC Bank) wherein an amount of Rs 3 Crore was siphoned out of her account by her relationship manager (RM).

 

RMs are representatives of the bank entrusted with managing high value clients’ accounts and providing them advice from time to time and facilitating transactions. Unfortunately, in this case, the RM misappropriated the funds and exploited his position to siphon off the money which was kept in trust.

 

 

Before the court could pass any coercive orders, HDFC voluntarily deposited substantial portion of the siphoned off amount. However, the court asked HDFC and RBI to treat the present case as a test case and come out with a comprehensive policy which should be in place to deal with a situation when a customer is defrauded by a bank employee. 

 

“This case underscores the importance of trust and accountability in banking. While the court has rightly directed the RBI to establish guidelines to handle such situations, it is equally important for banks to tighten their internal checks and take responsibility for the actions of their employees,” Rishabh Gandhi, managing partner, Rishabh Gandhi and Advocates.

 

Gandhi explains what should users keep in mind

 

For customers, vigilance is the best safeguard. Always monitor your transactions closely, limit reliance on relationship managers, and use secure, traceable banking channels for authorising transactions. Remember, safeguarding your money is a shared responsibility— between the institution and the individual. This incident should serve as a reminder for both banks and consumers to prioritise transparency, accountability, and awareness in financial dealings.

 

“The banks have set up SMS and email authentication, which shall be verified by the customer and all transactions shall be monitored from time to time. The customer shall use only official communication and written confirmation from the bank. The customer shall keep themselves updated for any change in policy or rights which can create an impact,” Razvi said.