Hyderabad

SBI penalised for not releasing fixed deposit

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Bank directed to pay ₹ 30,000 to compensation to customer for deficiency of service

A consumer forum directed State Bank of India to release two fixed deposits amounting to ₹ 3 lakh, after necessary deductions, and pay compensation of ₹ 30,000 to its customer for deficiency of service as it had withheld their release.

The Consumer Disputes Redressal Forum, Hyderabad – III was dealing with a complaint filed by K Narsing Rao (51), a resident of Regimental Bazaar. Mr. Rao stated that his deceased mother K Tara Bai and he jointly held the two FDs. His mother passed away in January 2013, after which he sought to get the FDs released as he is the only heir. However, the bank refused.

He later stated that in October, 2017 he wrote a letter to the bank. While receipt of the letter was acknowledged, the bank did not release the FDs. He later approached the banking ombudsman who informed him that as per stipulations, the complaint was closed on account of a City Civil Court already having dealt with it. The complainant denied knowledge of the case.

The court case, it was later found out, was in connection with the complainant providing surety to a defaulter, identified as K Geeta Bai. A order had been given ex parte.

For its part, the bank denied deficiency of service. It denied the claim that the complainant approached it for release of the FDs. It also stated that the complainant gave surety ‘to fraudulent encashment of fixed deposit of one K Geeta Bai’. It stated that the banking ombudsman closed the case and that the bank had filed a suit in the City Civil Court for recovery of this amount.

Taking evidence placed on record into consideration, the forum directed the bank to release the two FDs after deducting the amount as ordered by the Civil Judge. It stated that the bank not releasing the FDs for many years amounts to deficiency of service and ordered that it pay ₹ 30,000 as compensation.

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Printable version | Jan 23, 2020 11:38:43 AM | https://www.thehindu.com/news/cities/Hyderabad/sbi-penalised-for-not-releasing-fixed-deposit/article30279224.ece

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