Dharwad (Karnataka): A consumer court in Karnataka has ordered Indian Overseas Bank to pay a fine of Rs 1,02,700 to a consumer after it failed to credit Rs 500 back into his account. The customer was wrongly debited Rs 500 for an ATM transaction where the money was not disbursed.
On November 28, 2020, lawyer Siddesh Hebbli from Dharwad tried to withdraw Rs 500 from his Indian Overseas Bank account using the ATM. While the savings account was debited, the money was not dispensed by the ATM machine.
He then went to a nearby ATM and withdrew Rs 500. However, the first transaction was never credited back to his account. On December 02, 2020, he complained to the branch manager of the Indian Overseas Bank about the same. The branch manager did not take any action on the complaint filed by Hebbli.
Following it, he filed a complaint with the District Consumer Commission of Dharwad demanding that action be taken against the bank. The Consumer Court Chairman Eashappa Bhute and members VA Bolashetti and PC Hiremath investigated the complaint and found it to be true.
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In case an ATM fails to dispense cash, the money should be credited to the account within 6 days from the date of the incident. Any delay after 6 days, the customer shall be compensated for the period of delay at the rate of Rs 100 per day. Thus, the branch manager of the Indian Overseas Bank in Saptapur, Dharwad ruled that despite the directives of the RBI, the bank committed dereliction of duty.
"The branch manager and administrative in charge who were working during this period should become trustees of the public. But they have committed dereliction of duty. The bank officials to take disciplinary action against the erring bank staff," the Consumer Court said in its judgment. "The complainant should be compensated Rs 500 for rejection and Rs 67,700 for delay of 677 days at Rs 100 per day with interest at the rate of 8% from November 28, 2020 as per Reserve Bank circular," the court said.
It added compensation of Rs 25,000 for the distress and mental torture caused to the complainant due to service deficiency and Rs 10,000 for the cost of the case taking the total compensation to Rs 1,02,700. The Dharwad District Consumer court has ordered to pay the concerned consumers within 30 days of the verdict.
District Consumer Court Chairman, who announced the decision, said that government and private banks should inform their customers about the rules of the Reserve Bank and the rules of their banks in detail. In order to advertise the privileges and facilities offered to the customers by the Reserve Bank, a promotional board should be installed in their bank premises in the local language.
