Kerala Consumer Commission Orders SBI to Release Deceased Father's Fixed Deposit with Interest to Son

The bank initially refused to release the funds citing 'unavailability of records' following the bank merger.

Kochi:

The Ernakulam District Consumer Disputes Redressal Commission has ordered State Bank of India (SBI) to pay the maturity proceeds of a deceased depositor's Fixed Deposit (FD) along with compensation to his son, after the bank failed to release the money claiming missing records.

PP George from Vyttila, Ernakulam, filed a complaint stating that his father PV Peter had invested Rs 39,000 in an FD at the State Bank of Travancore (SBT), Vyttila branch, back in 1989.

After his father passed away in June 2022, George approached SBI, which had absorbed SBT through a merger, to claim the deposit. However, the bank refused to release the amount, claiming they couldn't locate the relevant records due to the merger.

George subsequently filed a case with the Consumer Commission. As evidence, he provided the original fixed deposit receipt, Aadhaar card, birth certificate, death certificate, and documentation of his correspondence with the bank.

The commission noted that even when deposits unclaimed for over ten years are transferred to the Reserve Bank of India (RBI) as per regulations, the depositor's or heir's right to claim the funds remains intact.

The commission further stated that banks must settle claims with customers and then seek reimbursement from the RBI, according to existing circulars.

"A FD receipt is more than just an accounting document; it represents a family's savings and trust. Consumers cannot be denied their rightful claims because of banks' internal procedural shortcomings," the bench observed.

The bench, consisting of President DB Binu and members V Ramachandran and TN Srividya, highlighted that unclaimed deposits totaling over Rs 67,000 crore remain with various banks across India.

The commission directed the bank to refund the FD amount of Rs 39,000, plus applicable interest according to RBI/SBI norms. Additionally, the bank was ordered to pay Rs 50,000 as compensation for mental agony and Rs 5,000 for litigation expenses to the petitioner within 45 days.