SBI Ordered to Pay Compensation After Wrongly Dishonouring Senior Citizen’s Cheque Despite Sufficient Funds
The District Consumer Disputes Redressal Commission has directed the State Bank of India (SBI) to pay ₹10,000 as compensation to a senior citizen after the bank dishonoured his cheque on the ground of “insufficient funds” despite more than ₹1.48 lakh being available in his account.
The order was passed on a complaint filed by Nareshjit Singh Anand, a resident of Sector 68, Mohali. According to the complaint, he issued a cheque in November 2025 in favour of the Mohali Employees Co-operative House Building Society for payment of his dues. However, SBI returned the cheque with the remark “insufficient funds” and also deducted a penalty of ₹590 from his account.
Anand informed the Commission that he had a balance of more than ₹1.48 lakh in his savings account when the cheque was presented for clearance. After he raised the matter with the bank, its officials admitted the mistake and refunded the penalty amount on November 28, 2025.
The Commission examined the bank statement and found that sufficient funds were available in the account when the cheque was dishonoured. It also noted that the bank later reversed the penalty charge, which showed that the cheque had been wrongly returned.
The Consumer Commission observed that the bank’s action amounted to a deficiency in service and caused mental harassment to the complainant, who is a senior citizen. Despite receiving notice, SBI did not appear before the Commission, and the case proceeded ex parte.
A bench comprising President S.K. Aggarwal and Member Lt. Col. Jasbir Singh Bath partly allowed the complaint and directed the bank to pay ₹10,000 as compensation, including litigation expenses, within 30 days. The Commission further stated that if the bank fails to make the payment within the stipulated period, the amount will carry interest at the rate of 6% per annum from the date of the order until its realization.
