Kerala widow gets Rs 14 lakh after bank ‘restricts’ access to her matured FD

“Holding an enquiry against officials of the bank under…Cooperative Societies Act, 1969 cannot be claimed as a reason for denying the timely discharge of the deposit to the consumer, especially when the second complainant is a widow and claims that the amount with the opposite party bank is the only source of her income to meet the expenses,” the September 17 order said.

It added, “The enquiry under…Kerala Co-operative Societies Act against the directors and staff of the Bank and the consequential departmental directions, if any, to the opposite party bank cannot be attributed as a justifiable reason for the delay in disbursing the amount deposited by the 2nd complainant (widow) with the opposite party Bank.” 

Rs 13.9 lakh stuck after FD maturity

According to the case, the widow had four fixed deposits with Kandala Sahakarana Sangham Cooperative Bank, Pongumoodu branch, amounting to Rs 15.5 lakh. After the deposits matured, the bank transferred the maturity amounts to her savings account. However, when she tried to withdraw the money, the bank restricted the withdrawals.

The widow alleged that she approached the bank to withdraw money for her mother’s medical treatment and to repay a gold loan. The woman said that despite her repeated requests and visits to the bank, the matter had not been settled. 

The bank admitted that the four fixed deposits had matured and the amount had been transferred to her savings account. However, it claimed to have restricted the withdrawals following an enquiry into irregularities at the bank and directions from the cooperative authorities to release depositors’ money according to a priority list.

The commission noted that, as per the record, Rs 13.9 lakh was in the widow’s savings account as on May 15, 2023. From the available evidence, it observed that there was a deficiency in service and unfair trade practice on the part of the bank, and the evidence produced by the widow showed that she suffered mental agony and financial loss due to the bank’s act. 

The commission allowed the complaint and directed the bank to pay Rs 13.9 lakh with nine per cent interest from the date of this complaint, from February 22, 2023, along with Rs 25,000 towards compensation and Rs 3,000 as cost of proceedings to the woman within 30 days from the date of receipt of this order, failing which the amount, except cost, shall carry an interest at nine per cent per annum from the date of order till the date of realisation/remittance. 

Takeaway

When a consumer makes the deposits in good faith with an expectation that the said amount would be available to them from the bank as and when any need arises, then it’s the bank’s responsibility to ensure that its consumer is satisfied with its services and the deposit is made available to her when she raises the demand for the same. 

For consumer-related grievances, individuals may contact the consumer helpline in their respective states and union territories (Kerala: 1800-425-1550) or call the National Consumer Helpline at 1915 for assistance. 

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