“These issues plague banking customers”: Delhi High Court expresses concerns over computer generated e-mails by Banks

The Delhi High Court recently expressed concerns over the computer-generated e-mails sent by Citibank to its customers without the contact information of the officials responsible for such emails.

Justice Prathiba M. Singh said, “These issues plague banking customers”. She opined that there ought to be some accountability when emails are sent in this manner by banks.

The court noted, “When the computer-generated e-mails are sent to the customers, they have no way of contacting the officials concerned, under whose instructions the said e-mails have been generated and sent”.

The court was hearing a contempt plea filed by a Citibank customer, namely Sarwar Raza, alleging violation of the orders passed by the High Court on December 5, 2022. The petitioner sought a refund of Rs. 76,777 that was debited from his credit card for a transaction he didn’t make.

The counsel for the bank submitted that he had no intention to violate a court order and that he wished to tender an unconditional apology. He submitted that the bank is willing to reverse all the charges including the penalty and other amounts which were charged to Raza, which amounts to Rs. 1,12,825.

While issuing notice, the single-judge bench directed Citibank to file an affidavit considering the following points:

1. Whether in the e-mails issued by Citibank to all its customers, the names of the officials concerned along with the e-mail ID of the said officials can be inserted, to ensure the accountability of the Bank officials.
2. In terms of changing registered mobile numbers, etc., what is the verification process that is followed before the registered mobile numbers can be changed? Because changing a registered mobile number can lead to serious misuse of a credit card or other net banking services.
3. The helplines in Citibank and how they are managed.
4. How the collection agents are being appointed for the collection of outstanding charges/amounts from customers.

The court also directed that a Senior Official of the bank handling the matter shall join the proceedings on the next date of hearing physically and other officials may join virtually. Furthermore, the court granted four weeks to RBI to file a reply on the aforementioned four points. Accordingly, the court listed the matter for further hearing on April 11.

Case Title: Sarwar Raza vs Ombudsman RBI & Anr.