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Consumer Forum imposes fine on SBI for deducting Rs.118 for Loan EMI Failure


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The District Consumer Forum has ruled in favor of Mr. Manoj Kumar Sharma, the complainant, in a case against the State Bank of India. Mr. Sharma had taken a loan of Rs 3 lakh from the bank to purchase a car, and he diligently paid his monthly installments of Rs 6,419 on time. On April 24, 2019, Mr. Sharma closed his loan account by depositing the remaining loan amount of Rs 64,852.

To his surprise, on May 20, 2019, the bank deducted Rs 118 from Mr. Sharma’s account, claiming that there was insufficient balance to cover the monthly installment. Despite Mr. Sharma’s complaint, the bank did not refund the deducted amount. Frustrated with the bank’s negligence, Mr. Sharma filed a case with the Consumer Forum on August 19, 2019.

The State Bank of India argued that Mr. Sharma only had a loan account with them and, therefore, they were not responsible for deducting Rs 118 when there was no outstanding installment. However, the Forum Bench-2, comprising President Giribala Singh and members Anjum Feroz and Arun Pratap Singh, found the bank’s service to be deficient. They ordered the State Bank of India to refund the deducted amount of Rs 118 to Mr. Sharma and compensate him with Rs 15,000 for the mental agony and other expenses he incurred.

This ruling serves as a reminder to financial institutions to ensure proper communication and transparency with their customers, and to rectify any errors promptly to maintain customer trust and satisfaction.

One Comment

  1. Earlier private banks used to charge irrationally many charges and public unaware of rights generally do not care now PSU banks have also been charging same way.Most of the people do not have time to fight it out so the banks are increasing their income in such way.

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