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Court orders SBI to pay compensation for delay in providing pension amount to customer


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The District Consumer Disputes Redressal Commission, Sangrur (Punjab), comprised of Jot Naranjan Singh Gill (President) and Sarita Garg (Member), held the State Bank of India (SBI) accountable for deficiency in services and unfair trade practices. The case involved the non-crediting of pension in the Complainant’s account for seven years.

Complainant’s Situation: Mrs. Balvir Kaur, a family pensioner, faced issues with SBI in receiving her family pension and other dues. Despite formalities completed for payment, the bank failed to credit the pension to her account due to not forwarding the sanction letter to the zonal branch.

Complaint and SBI’s Response: Feeling aggrieved, the Complainant filed a consumer complaint against SBI in the District Consumer Disputes Redressal Commission. SBI raised objections, asserting the complaint lacked basis and was false. It claimed that the Complainant did not address the pension orders issued lapse and never informed the bank about non-receipt of pension payments.

Commission’s Decision: The District Commission found that SBI delayed payment for over seven years without a satisfactory explanation, only taking action after the consumer complaint was filed. Consequently, the Commission held SBI liable for deficiency in service and unfair trade practices.

Compensation and Reimbursement: The Commission awarded the Complainant interest at 7% per annum on the delayed amount. Recognizing the mental tension and harassment endured, SBI was directed to pay Rs. 15,000/- as compensation and reimburse Rs. 10,000/- towards the Complainant’s litigation expenses.

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