Bank Fined Rs 10,000 Over Delayed Funds to Deceased Customer
Key Highlights
- Ernakulam consumer commission directs bank to pay Rs 10,000 as compensation for delayed funds to deceased customer.
- Bank delayed payment for over three months, forcing farmer to make repeated visits to branch.
- Commission rules that bank should have communicated with farmer in regional language due to language barrier.
The Ernakulam consumer commission has directed a bank to pay an 83-year-old farmer Rs 10,000 as compensation for delaying the release of his late wife's savings account. The bank had delayed the payment for over three months. Forcing the farmer to make repeated visits to the branch and causing him financial hardship and mental agony.
The farmer had submitted the required documents. This includes relationship certificates and death certificates, but the bank refused to release the funds without a legal opinion. The farmer then sent a registered letter to the bank, which led to a further delay.
The bank eventually released the funds after the farmer submitted additional documents.
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The consumer commission ruled in the farmer's favour. Officials stated that the bank had not dealt with his claim with the level of diligence and transparency expected of a regulated banking institution. The commission noted that the bank should have communicated with the farmer in his regional language, as he did not understand English.
The commission also referred to the RBI's 2005 charter. Which states that communication between banks and their customers should be in English, Hindi, or the relevant regional language. The RBI has emphasized the need for deceased-depositor claims to be settled through simple and hassle-free procedures.
The farmer won the case on August 31. 2026, and the bank was ordered to pay him an additional Rs 5,000 towards litigation expenses.
Key Highlights
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