Chennai: Rs 1 lakh fine on a nationalised bank for wrong debit

The branch manager informed him that there was some error and they would rectify it soon.

Update: 2017-07-02 20:15 GMT
As part of crackdown on black money, Rs 1,000 and Rs 500 notes were banned on November 8, 2017.

Chennai: The District Consumer Disputes Redressal Forum, Chennai (North) has slapped a fine of Rs 1 lakh on a nationalised bank for wrongly debiting amount from a savings bank account.

 In the petition, A. Abdul Ghafoor, Kellys submitted that he deposited a cheque drawn for Rs 49,500 issued by a person on March 25, 2013 into his savings account in Indian Overseas Bank, Kilpauk branch.

The amount was credited in his account on March 31, 2013. Again on June 2, 2014 he deposited a cheque drawn for an amount of Rs 2 lakh and his balance increased to Rs 2.03 lakh.

While Abdul Ghafoor made an entry in his pass book he found that on June 7, 2014 a sum of Rs 49,500 was debited from his account without his knowledge. When contacted the branch, the manager could not provide details about the unauthorised withdrawal. Immediately, he sent a complaint on June 26, 2014.

The branch manager informed him that there was some error and they would rectify it soon.

Even after a month the amount was not returned or deposited in his account. He issued legal notice on January 22, 2015. As there was no reply, he filed this petition seeking direction to Branch Manager, and Chief Customer Service Officer, Indian Overseas Bank, Central Office, Chennai to return Rs 49,500 with interest and also compensation for causing him mental agony.

In the reply, the IOB stated that the staff committed a mistake in clearing the cheque. After knowing this, the branch manager on June 16, 2014 wrote a letter to concerned bank to recover the amount from the account holder. Stating that it had not committed any negligence in service, the bank sought dismissal of the petition.

The bench comprising President K. Jayabalan and Member T. Kalaiyarasi, said banks normally are duty bound to inform account holders while debiting an amount. Even after deducting the amount, the branch manager did not inform the customers.

“The bank came to know about the wrong clearance one year after committing the mistake. Therefore, we hold that the bank committed deficiency in service,” the bench said. The bank has been directed to return Rs 49,500 to him with nine per cent interest from June 7, 2014.

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