Ranga Reddy: Consumer panel asks SBI, Canara Bank to recover ₹23L; slaps ₹50K fine for RTGS error
The panel has asked the banks to pay ₹50,000 compensation to the customer.
By Sistla Dakshina Murthy
Representative Image
Hyderabad: Holding banks accountable for inaction, the Ranga Reddy District Consumer Commission has directed State Bank of India (SBI) and Canara Bank to recover ₹23 lakh wrongly transferred to another account.
The panel has asked the banks to pay ₹50,000 compensation to the customer.
Loan taken to clear sister’s dues
The complainant, P. Venkata Lakshmi, a resident of Kukatpally, had availed a personal loan of ₹25 lakh from SBI’s Vivekananda Nagar branch to repay her sister’s loan with APSFC.
On October 27, 2023, she issued a cheque to transfer ₹23 lakh through RTGS to APSFC’s account maintained at Canara Bank, Khammam branch.
Error in account number leads to wrong credit
However, due to a clerical mistake in the account number, where four zeros were required but only three were mentioned, the amount was erroneously credited to an account belonging to one Shivakumar Patel at Canara Bank’s Jagaluru branch in Karnataka.
Immediate alert, but no prompt action
On noticing the error, Venkata Lakshmi immediately informed SBI officials on the same day. Bank staff reportedly assured her that the amount would be reversed by evening, but no such action followed.
Meanwhile, the unintended beneficiary withdrew ₹8.5 lakh soon after the amount was credited, while the remaining funds were later put on hold by the bank.
Complaints fail to yield results
Despite approaching both banks, the Reserve Bank of India (RBI), the Banking Ombudsman, and other grievance mechanisms, the complainant did not receive any effective resolution.
With no relief forthcoming, she moved to the Consumer Commission seeking justice.
Banks held liable for deficiency in service
During the proceedings, SBI contended that the error was solely due to the complainant’s mistake. However, after examining the case records and evidence, the Commission held that the banks failed to act promptly to recover the funds, amounting to a deficiency in service.
45-day deadline for compliance
The Commission directed SBI and Canara Bank to recover the transferred amount from the beneficiary and also pay ₹50,000 as compensation to the complainant. It granted 45 days for the implementation of the order.
