Kochi, Oct 4 PTI The Ernakulam District Consumer Disputes Redressal Commission, here, has ordered the SBI to repay a deceased depositor’s Fixed Deposit (FD) maturity proceeds and pay compensation to his son, for failing to release the money citing missing records.

PP George of Vyttila, Ernakulam, in his complaint, stated that his late father PV Peter had deposited Rs 39,000 as an FD at the State Bank of Travancore (SBT), Vyttila branch, in 1989.

Following his father’s death in June 2022, George approached SBI, into which SBT was later merged, to claim the deposit. However, the bank declined to release the amount, citing that the relevant records were unavailable due to the bank’s merger.

George then approached the Consumer Commission seeking relief. He produced the original fixed deposit receipt, Aadhaar card, birth certificate, death certificate, and correspondence with the bank as evidence.

The commission observed that even if deposits unclaimed for over ten years are transferred by banks to the Reserve Bank of India (RBI) as per the norms, the depositor’s or heir’s right to claim the money does not lapse.

It further held that banks are obligated to settle the claim with the customer and later seek reimbursement from the RBI, as per existing circulars.

"A FD receipt is not merely an accounting record; it represents a family’s savings and trust. Consumers cannot be denied their rightful claims due to internal procedural lapses of banks,” the bench observed.

The bench comprising President DB Binu and members V Ramachandran and TN Srividya noted that unclaimed deposits worth over Rs 67,000 crore remain with various banks across the country.

It directed the bank to refund the FD amount of Rs 39,000, along with applicable interest as per RBI/SBI norms. It also directed the bank to pay Rs 50,000 as compensation for mental agony and Rs 5,000 towards litigation expenses to the petitioner within 45 days. PTI TBA TBA ADB

Deceased depositor's FD: bank must refund principal with interest and pay compensation for denial due to missing records. The commission reaffirmed that the right of a depositor or heir to claim unclaimed deposits does not lapse and that an FD receipt is valid proof of the deposit. Banks are obligated to settle valid claims with customers or heirs and may thereafter seek reimbursement from the central bank under existing circulars. Denial of payment due to missing internal records constitutes a procedural lapse warranting compensation; banks must reimburse the FD principal with applicable interest and pay compensation and litigation costs within a specified period.