The Hindu : Tamil Nadu / Chennai News : Private bank ordered to pay compensation

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Tuesday, Mar 31, 2009
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Tamil Nadu

Tamil Nadu - Chennai

Private bank ordered to pay compensation

K.T. Sangameswaran

CHENNAI: The District Consumer Disputes Redressal Forum (DCDRF), Chennai (North), has directed a private bank to pay Rs.50,000 as compensation to a customer for deficiency in service.

E.Vijay Anand of Kallakurichi in Villupuram district said he maintained Rs.10,000 as minimum balance in his savings bank account in Standard Chartered Bank.

When he wanted to withdraw Rs.5000 in January 2005 using his ATM card at Royapettah, the machine displayed a message that the account was frozen and asked him to contact the bank. When he contacted the bank, he was informed that since the account was not operated for a few months, it was frozen. He was asked to deposit some amount to reactivate it. Later, his self-drawn cheque was returned for the reason “restricted account”. The bank submitted that the complainant had not used the debit card for two years. Therefore, his SB account was declared as dormant. His account was reactivated later and the complainant made the withdrawal. Hence there was no deficiency in service. The forum Bench comprising president P. Roasiah and members T. Kamalakannan and M. Sheela said the bank’s act was against its own rules. In fact, the bank had not informed the customer that his account would be treated as dormant if the debit card was not used for two years. The Bench felt there was deficiency in service by the bank.

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