New Delhi: Punjab National Bank (PNB) has issued an important advisory to all its branches after facing a major setback in a consumer complaint related to operations in a joint account.
The issue came to light after a dispute between joint account holders over the issuance of a Debit Card and change of registered mobile number.
What Happened?
One of the joint account holders independently requested the branch to issue a Debit Card and also change the registered mobile number linked to the account.
Based on this request, the bank issued the Debit Card and updated the mobile number in its records. Later, withdrawals amounting to ₹11.06 lakh were made using that Debit Card.
However, the other joint account holder later approached the branch and claimed that he had not given any consent or instruction for issuing the Debit Card or changing the mobile number.
Consumer Court Decision Against the Bank
The matter was taken to the District Consumer Disputes Redressal Commission (DCDRC).
After reviewing the case, the Commission ruled against the bank. The DCDRC observed the following:
- As per the bank’s prescribed application forms, requests for issuance of Debit Cards in joint accounts require the signatures of all joint account holders.
- Similarly, any request for change of registered mobile number in a joint account also requires signatures of all account holders.
- In this case, this requirement was not followed.
- The Commission also found that the signatures on the documents did not match the specimen signatures available in the bank’s records.
Due to these lapses, the DCDRC directed the bank to pay ₹19.70 lakh, which includes:
- Principal amount
- Interest
- Compensation
- Litigation cost
PNB Issues Strict Instructions to Branches
Following this order, Bank issued an advisory:
1. Joint Accounts – Debit Card Issuance & Mobile Banking Registration
As per the bank’s Board-approved Debit Card policy:
- In joint accounts, Debit Cards can be issued only if the mode of operation is ‘Severally’.
- Even in such cases, the request for issuance of a Debit Card must be signed by all joint account holders, as per prescribed forms.
- Joint accounts with mode of operation marked as ‘Jointly’ are not eligible for issuance of ATM/Debit Cards.
Branches have been instructed to strictly follow these rules.
2. Mobile Number Registration / SMS Alert Registration
The bank informed that a standardized application form (PNB-1392) has been issued for registration or updation of mobile number and email ID for individual customers.
- Mobile number registration is CIF-based.
- The form must be signed by the Primary Account Holder.
- The application must be retained along with the account opening form as per existing guidelines.
3. Mandatory Verification of Signatures
The circular also stresses that:
- Signatures of account holders on all service requests must be mandatorily verified with the specimen signatures available in the bank’s records before processing.
- Branch officials must verify the mode of operation of the account before acting on any request.
- All required documents and signatures must be obtained strictly as per the account mandate and prescribed forms.
- Proper records and acknowledgements of all such requests must be maintained for future reference.
The bank has warned that non-compliance with these instructions may expose the bank to financial losses and reputational risks.
Why This Case Is Important
This case highlights the risks involved in handling joint accounts without proper consent from all account holders. The consumer court’s decision shows that banks can be held liable if prescribed procedures are not strictly followed.
PNB has now directed all branches to ensure strict compliance to prevent similar incidents in the future.
