Now Reading: Kotak Mahindra Bank fined Rs 1.5 lakh for false credit card demand
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Kotak Mahindra Bank fined Rs 1.5 lakh for false credit card demand
Kotak Mahindra Bank has been ordered to pay Rs 1.5 lakh in compensation by the Delhi State Consumer Disputes Redressal Commission for raising a demand of Rs 19,788 from a customer who…
The Story in Brief
Kotak Mahindra Bank has been ordered to pay Rs 1.5 lakh in compensation by the Delhi State Consumer Disputes Redressal Commission for raising a demand of Rs 19,788 from a customer who had already repaid his credit card dues in full. The customer had bought a Samsung TV using his card, paying 12 EMIs between June 2020 and May 2021. Despite providing proof of payment, the bank continued to demand the amount and threatened to block his card and damage his CIBIL score. The commission overturned a District Commission order that had dismissed the case on technical grounds.
The order, passed on 22 July 2026, also directed the bank to withdraw the demand entirely. The commission found that Kotak had not provided a statement of account or basis for the disputed amount, amounting to deficiency in service and unfair trade practice.
The Indian Opinion
This case is a reminder that banks sometimes use credit score threats as a blunt instrument even when they are in the wrong. The Delhi commission's order rightly calls out deficiency in service. But the bigger question is how many such cases go unchallenged because customers fear litigation. The RBI must demand that banks provide clear billing breakdowns for disputed amounts. Kotak's response to the order will show if it takes customer complaints seriously.
Source: economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
