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Andhra Pradesh
VISAKHAPATNAM: Does a fixed deposit receipt get renewed automatically in the event of it getting lost? The Visakhapatnam District Consumer Forum-I has delivered a judgment in favour of consumer, directing a bank to pay the maximum prevailing rate of interest on the FDR, along with compensation and costs. The consumer, J. Gowri Shankar, deposited Rs.62,483 with ING Vysya Bank (formerly The Vysya Bank) main branch in the city under fixed deposit receipt scheme on February 1, 1996 for 75 days with interest payable at 12 per cent a year. He later shifted his residence from Tulasipeta to Srinagar Colony in the city during which process had lost the FDR and could not trace it. He wrote a letter to the bank last year requesting it to pay interest by automatically renewing the FDR while informing the loss of FDR. The bank replied its inability to renew the FDR and pay interest.
The consumer then filed a complaint (473/2007) against the branch manager and also the Regional manager of the bank at Dwarakanagar for repayment of the deposit with interest, compensation and cost of complaint. OP’s contentionThe opposite party (OP) filed a counter saying that it was the prerogative of each individual bank to frame its own rules and regulations, subject, however, to the regulation of Reserve Bank of India which was the governing authority for all the banking and financial institutions. The OP contended there was no deficiency in service on its part and prayed for dismissal of the complaint with costs. In their recent verdict, the President of the Forum Y. Dhilleswara Rao and members G. Viswanatha Reddy and D. Suseela, noted that the bank had stated that savings bank rate of interest at 3.5 per cent a year would be paid on the FDR. They referred to another FDR of the complaint with State Bank of India, Dwarakanagar which had mentioned that ‘the deposit will be automatically renewed for a similar period on the due date if the bank does not receive any instructions to the contrary’. The Forum also noted that the bank had not clarified on the rate of interest in the given circumstances of the case. “The non-filing is nothing but withholding of vital information. The amount deposited by the complainant has been with the OP which cannot keep idle, it said, and wondered why not money deposited in bank should not grow though there was no renewal. In the result, the Forum directed the OP to pay maximum prevailing rate of interest on Rs.62,483 from April 17, 2006 till the date of payment to the consumer. It also directed the OP to pay Rs.1,000 towards compensation for mental agony and another Rs.1,000 towards cost of litigation.
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