Kochi: The Ernakulam District Consumer Disputes Redressal Commission has ordered the State Bank of India (SBI) to repay a deceased depositor’s fixed deposit maturity amount and provide compensation to his son after the bank refused to release the funds, citing missing records.

The case was filed by PP George of Vyttila, Ernakulam, whose father PV Peter had deposited ₹39,000 in 1989 at the State Bank of Travancore (SBT), Vyttila branch. Following Peter’s death in June 2022, George approached SBI, which had since merged with SBT, to claim the amount. However, the bank declined the request, saying records were unavailable due to the merger.

George then approached the Consumer Commission, presenting the original FD receipt along with his father’s death certificate, Aadhaar, birth certificate, and correspondence with the bank.

The commission observed that even though unclaimed deposits older than ten years are transferred to the Reserve Bank of India (RBI), the depositor or their heirs retain the right to claim them. It ruled that banks are obligated to settle such claims and later seek reimbursement from the RBI.

“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 stated.

The bench, comprising President DB Binu and members V Ramachandran and TN Srividya, also noted that unclaimed deposits with banks across India amount to over ₹67,000 crore.

The Commission directed SBI to refund the FD of ₹39,000 with applicable interest, and to pay ₹50,000 as compensation for mental agony and ₹5,000 towards litigation costs within 45 days.
(With PTI inputs)