Ernakulam: The Ernakulam District Consumer Disputes Redressal Commission has directed the State Bank of India (SBI) to repay the maturity proceeds of a deceased depositor’s fixed deposit (FD) and compensate his son for refusing to release the funds, citing missing records.

In his complaint, P.P. George of Vyttila, Ernakulam, stated that his late father, P.V. Peter, had deposited ₹39,000 as a fixed deposit at the State Bank of Travancore (SBT), Vyttila branch, in 1989.

After his father’s death in June 2022, George approached SBI — which had merged with SBT — to claim the deposit. However, the bank declined the request, saying the relevant records were unavailable following the merger.

George subsequently moved the Consumer Commission, producing the original FD receipt, Aadhaar card, birth and death certificates, and correspondence with the bank as evidence.

The commission observed that, under existing norms, even if unclaimed deposits are transferred to the Reserve Bank of India (RBI) after ten years, the depositor’s or heir’s right to claim the funds remains valid.

It also held that banks are duty-bound to settle legitimate claims and can later seek reimbursement from the RBI, as stipulated in current 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 noted.

The panel, comprising President DB Binu and members V Ramachandran and TN Srividya, further pointed out that unclaimed deposits worth more than ₹67,000 crore remain with banks across the country.

The commission directed SBI to refund the FD amount of ₹39,000 with applicable interest as per RBI and SBI norms. It also ordered the bank to pay ₹50,000 as compensation for mental agony and ₹5,000 towards litigation expenses to the petitioner within 45 days.

PTI inputs