The District Consumer Disputes Redressal Commission-VII, Southwest Delhi bench, consisting of Suresh Kumar Gupta (President), Harshali Kaur (Member), and Ramesh Chand Yadav (Member), recently held Vijaya Bank liable for deficiency in service and breach of trust. The bank was found to have disclosed the complainant’s bank statements to her estranged husband, which violated the bank’s obligation to maintain the confidentiality of customer account details.
The commission noted that even a spouse cannot view a bank statement without the consent of the account holder. The complainant had accused the bank of breaching the model policy for bank deposits, which mandates the confidentiality of customer account details. She claimed that the bank disclosed her bank account statements to unauthorized parties, including her estranged husband, despite her explicit instructions.
The complainant emphasized the seriousness of this breach and highlighted her husband’s involvement in embezzlement during his tenure as a Treasury Officer at Tis Hazari Court, Delhi, which had led to his police custody. She argued that these disclosures caused her irreparable harm and mental harassment. As a result, she filed a consumer complaint against the bank with the District Consumer Disputes Redressal Commission-VII, Southwest Delhi (“District Commission”).
In response, the bank contended that it maintained the confidentiality of the complainant’s account and did not disclose any unauthorized statements. It clarified that the complainant’s estranged husband had a separate account, which was closed years ago. The bank also refuted claims regarding the non-issuance of an ATM card and argued that standard procedures were followed. It further argued that the complainant did not provide the necessary documentation for an address change, which was eventually updated as per Know Your Customer (KYC) norms.
However, the District Commission noted that the bank statement was issued on May 7, 2010, during operational hours, despite the bank’s denial of such action. This discrepancy was considered significant as it supported the complainant’s argument against the bank’s mere denial. The District Commission held that this constituted a serious breach of privacy and a potential criminal breach of trust.
Violation of Privacy and Deficiency in Service
The District Commission held that bank statements contain sensitive financial details that are integral to a person’s privacy. Typically, they are released only to the account holder or upon explicit authorization. Given the strained relationship between the complainant and her husband, the disclosure of the bank statement without consent was a clear violation of regulatory guidelines and banking norms. The commission referred to RBI guidelines and banking rules that explicitly prohibit such unauthorized disclosures. Therefore, the bank’s actions were deemed to constitute a deficiency of service and an invasion of the complainant’s privacy.
Additionally, the District Commission found that the bank failed to effectively communicate the readiness of the complainant’s ATM card and fulfill its basic service obligations. Despite the complainant’s proactive steps in requesting an ATM card and updating her address, the bank’s failure to address these requests was considered another instance of deficiency in service.
Compensation and Conclusion
As a result of the bank’s actions, the District Commission ordered Vijaya Bank to pay compensation amounting to Rs. 1,00,000/- to the complainant for mental harassment and litigation expenses.