SBI Ordered to Refund Deceased Customer’s FD and Provide Compensation to his Son in Kerala

Kochi: The Ernakulam District Consumer Disputes Redressal Commission has ordered the State Bank of India (SBI) to repay the fixed deposit amount of a deceased customer and pay compensation to his son. The bank had earlier refused to release the money, saying that the records were missing.

P.P. George from Vyttila, Ernakulam, filed a complaint stating that his late father, P.V. Peter, had deposited ₹39,000 as a fixed deposit at the State Bank of Travancore (SBT), Vyttila branch, in 1989.

After his father’s death in June 2022, George approached SBI — which had merged with SBT — to claim the deposit. However, the bank denied the request, saying the records were unavailable because of the merger.

George then approached the Consumer Commission for help. He presented the original fixed deposit receipt, Aadhaar card, birth certificate, death certificate, and his communication with the bank as proof.

The Commission noted that even though unclaimed deposits older than ten years are transferred to the Reserve Bank of India (RBI), the depositor or their heirs still have the right to claim the money.

It also said that banks must settle such claims first and later seek reimbursement from the RBI, as per existing circulars.

The Commission observed, “A fixed deposit receipt is not just an accounting record; it represents a family’s savings and trust. Customers cannot be denied their rightful claims due to internal issues of the bank.”

The bench, led by President D.B. Binu and members V. Ramachandran and T.N. Srividya, also pointed out that unclaimed deposits worth over ₹67,000 crore remain with various banks across India.

The Commission directed SBI to refund the fixed deposit amount of ₹39,000 with interest as per RBI/SBI rules. It also ordered the bank to pay ₹50,000 as compensation for mental agony and ₹5,000 as litigation expenses to George within 45 days.