Home - Banking News - SBI Paid Double on Cancellation of Flipkart Orders

SBI Paid Double on Cancellation of Flipkart Orders

This is really beautiful, when you get double refund on not purchasing anything from Flipkart. Recently Moneycontrol has reported an incident where  State Bank of India (SBI) has deposited double the cancelled amount in 39 accounts. The money was once credited on the day of the cancellation and credited again a few days later.

SBI already have lost more than Rs 7 crore from 1,090 transactions in 39 accounts through the purchases and transaction took place last year.

Such type of incidents were always expected from the college students 😆 , who advised their friends and family to follow the same procedure.

Post cancellation of their purchase order, initially they realized that they had received double credits, which triggered the series of online purchases from Flipkart and later cancelled their orders. This costs bank a whopping seven crore loss.

Mode of Fraud

This was not the fraud rather faulty configuration of payment system from the SBI side. In online transaction cancellations earlier in the bank, buyers got their refund from merchants manually after receipt of funds and advice from payment masters like MasterCard, Visa or Rupay.

It was reported that the Visa later came up with a new online refund project in the SBI, where money was credited directly to the customers.

Initially, the plan was floated on a pilot basis, in five bank identification numbers (BIN). A BIN is a four-digit number that uniquely identifies the institution issuing the card. The manual refund process was discontinued and the new project was extended.

Due to gap in the installation between the old and the new system—the customers of SBI got their refunds from the merchants as well as the banks. SBI treated the case as a fraud and the investigation is underway.

SBI has reported a hike of 324% frauds during December quarter.

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